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HomeMy WebLinkAboutAugust 2, 2012 Agenda AGENDA CITY OF DENTON CITY COUNCIL August 2, 2012 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Special Called Work Session on Thursday, August 2, 2012 at 8:30 a.m. in the Council Work Session Room at City Hall, 215 E. McKinney, Denton, Texas at which the following items will be considered: 1.Receive a report, hold a discussion, and give staff direction regarding the FY 2012-13 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. 1. Closed Meeting A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1.Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric (DME) for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the _________ day of ___________________, 2012 at _________ o’clock (a.m.) (p.m.) ____________________________________ CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: August 2, 2012 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion, and give staff direction regarding the FY 2012-13 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. BACKGROUND The FY 2012-13 City Manager’s Proposed Budget is submitted to the City Council as part of this item. The information provided in the Proposed Budget has been derived from a culmination of input from the City Manager, City Council, Public Utilities Board, service level demands, department requests, and miscellaneous economic assumptions. The Proposed Budget includes summary information concerning the following items: FY 2011-12 year-end revenue and expenditure estimates Proposed FY 2012-13 tax rate Proposed FY 2012-13 Budget by Fund Proposed FY 2013-17 financial forecast for the major operating funds Proposed FY 2013-17 planned capital improvement program Proposed FY 2012-13 Utility Budgets and proposed rates A copy of the long term financial plans for each major operating fund is included in the proposed budget document. Each of the utility fund plans have been reviewed by the Public Utilities Board (PUB), and the PUB has recommended approval of the Electric, Water, Wastewater, and Solid Waste budgets. The Electric Fund long term financial forecast has been provided to you under separate cover. Due to the confidential nature of this information, it may be necessary to enter a Closed Session discussion with the City Council should you wish to discuss it in detail. I have also attached as Exhibit 2 a summary of the supplemental funding requests submitted for the General Fund and other select funds. The summary indicates the packages that were requested by departments and those that have been recommended for approval by the City Manager. For the recommendations that are being proposed out of funds other than the General Fund, a footnote and legend has been provided to indicate the specific funding source for these items. Additionally, funding requests submitted by the City Council are also noted with an Agenda Information Sheet August 2, 2012 Page 2 asterisk. Also, in Exhibit 3, a summary of the supplemental package requests not recommended in the FY 2012-13 Proposed Budget is provided for your review. th During the June 5 budget discussion, the City Council asked for a summary of the debt service requirements by fund. In addition, the Council also requested a summary of the average utility bills that have been paid over the past five years. This information is provided for your review as Exhibits 4 and 5. In Exhibit 6, a summary of planned compensation increases for area cities in the Metroplex is provided. This information is preliminary and subject to change, but nevertheless, it should provide an overview of the compensation changes which are tentatively planned in the area. Additionally, Exhibit 7 provides a compensation analysis for the Fire and Police Departments as required by the City’s meet and confer agreements. As discussed in the Proposed Budget, rate increases are planned for the Water and Wastewater utilities. In addition, rate increases are also proposed for Solid Waste services. Exhibit 8 is a redline summary of the various rate ordinances which have been recommended for approval by the Public Utilities Board. These rates will be formally presented to the City Council for approval on September 11, 2012. The purpose of this work session is to discuss this information and provide the City Council with detailed information concerning the proposed budget. This work session item is intended to provide a forum for discussions with management and allow an opportunity for questions. Exhibit 9 is a detailed PowerPoint presentation concerning the proposed budget. This will be used to facilitate a discussion of the Proposed Budget. Below is the schedule we will follow to adopt the budget and tax rate: August 7 Vote to Consider a Proposal for a Tax Increase prior to publishing Notice of Hearing (if necessary). st August 21 1 Public Hearing on Tax rate (if necessary). Public Hearing on Proposed Budget. nd August 28 2 Public Hearing on Tax rate (if necessary). September 11 City Council Adopts Budget and Tax rate. I look forward to discussing the City Manager’s FY 2012-13 Proposed Budget in detail with you. If you have any questions, or need additional information, please let me know. Agenda Information Sheet August 2, 2012 Page 3 EXHIBITS 1.FY 2012-13 City Manager’s Proposed Budget 2.Summary of City Manager Recommendations for Supplemental Funding Requests 3.Summary of Supplemental Package Requests Not Recommended 4.FY 2011-12 Debt Service by Fund 5.Summary of Utility Bills Over the Past Five Years 6.Summary of Planned Compensation Increases for Metroplex Cities 7.Memorandum Regarding Civil Service Compensation 8.Proposed Utility Rate Ordinances 9.Power Point Presentation – 2012-13 Proposed Budget and Financial Forecast Respectfully Submitted By: Bryan Langley Chief Financial Officer EXHIBIT1 City of Denton, Texas Proposed Annual Program of Services CITY OF DENTON PROPOSED APS NNUAL ROGRAM OF ERVICES 2012-13 S UBMITTED TO TMCC HE AYOR AND ITY OUNCIL July 27, 2012 The following statement is provided in accordance with state law budget by $2,099,160 or 4.75% and of that amount $918,440 is tax revenue to be raised from new property added to the tax roll this year. 1 City of Denton, Texas Proposed Annual Program of Services PREPARED BY: George C. Campbell City Manager Jon Fortune Howard Martin Assistant City Manager Assistant City Manager Fred Greene Bryan Langley Assistant City Manager Chief Financial Officer Antonio Puente, Jr. Michelle McCallum Assistant Director of Finance Budget and Municipal Court Manager Harvey Jarvis Mike Halsema Controller Financial Analyst Cindy Hartman Christine Taylor Budget Technician Budget Technician Mary Dickinson David Wilson Utility Budget Manager Utility Business Manager Nancy Towle Nicholas Vincent Utility Budget and Rate Manager Utility Financial Administrator Caroline Finley Randee Klingele Treasury Administrator Treasury Services Specialist Cody Wood Kevin Ann Mullen, CPA Assistant Controller Assistant Controller Diane Chang, CPA Kurt Breyfogle Senior Grant Accountant Senior Utility Accountant Cindy Liang, CPA Edward Lane, CPA Accountant III Accountant III Randall Mahaffey, CIA Theresa Jaworski Senior Accountant Finance Administrative Assistant Special Thanks to our Public Communications Office for the design of the cover and dividers, publication of the Proposed Annual Program of Services, and Web page design and postings Visit our website at: www.cityofdenton.com 2 City of Denton, Texas Proposed Annual Program of Services In April 2011, the City of Denton adopted a new strategic plan. into five Key Focus Areas (KFAs) and the major goals and objecti the following pages. Below are the vision, mission, and values for the strategic plan. V ISION Denton is an identifiable and memorable destination and a commun achieve this by providing high quality of life through excellenc employment; neighborhood vitality and sustainability; environmen and superior public facilities and services. M ISSION The City of Denton will foster an environment that will deliver products through stakeholder, peer group, and citizen collaborat and sustainable and efficient use of resources. V ALUES We care about our people, our community, and our work. We do th fairness. 3 City of Denton, Texas Proposed Annual Program of Services CITYOFDENTON STRATEGICPLAN KFA1:ORGANIZATIONALEXCELLENCE Goal1.1.Managefinancialresourcesinaresponsiblemanner. Goal1.2.Developahighperformanceworkforce. Goal1.3.Promoteeffectiveinternalandexternalcommunication. Goal1.4.Provideexemplarycustomerservice. Goal1.5.Utilizetechnologytoenhanceefficiencyandproductivity. 4 City of Denton, Texas Proposed Annual Program of Services CITYOFDENTON STRATEGICPLAN KFA2:PUBLICINFRASTRUCTURE Goal2.1.OptimizeresourcestoimprovequalityofCityroadways. Goal2.2.Seeksolutionstomobilitydemandsandenhanceconnectivity. Goal2.3.Promotesuperiorutilityservicesandfacilities. Goal2.4.Managedrainageinfrastructure. Goal2.5.DevelopCapitalImprovementProgram(CIP)basedoncommunityneeds. 5 City of Denton, Texas Proposed Annual Program of Services CITYOFDENTON STRATEGICPLAN KFA3:SUSTAINABLEECONOMICDEVELOPMENT&ENVIRONMENTALSTEWARDSHIP Goal3.1.Managegrowth,development,andredevelopmentopportunities. Goal3.2.Encourageeconomicdevelopment. Goal3.3.Promoteenvironmentalsustainability. 6 City of Denton, Texas Proposed Annual Program of Services CITYOFDENTON STRATEGICPLAN KFA4:SAFE,LIVABLE,andFAMILYFRIENDLYCOMMUNITY Goal4.1.Enhancepublicsafetyinthecommunity. Goal4.2.SeekcleanandhealthyneighborhoodsintheCityofDenton. Goal4.3.Providequality,diverse,andaccessibleneighborhoodservicesforthecommunity. 7 City of Denton, Texas Proposed Annual Program of Services CITYOFDENTON STRATEGICPLAN KFA5:PARTNERSHIPSANDREGIONALLEADERSHIP Goal5.1.Activelyparticipateinregional,state,andfederalinitiatives. Goal5.2.Maintainvisibleandeffectiverelationshipswithgovernmentalandnongovernmental organizations. 8 City of Denton, Texas Proposed Annual Program of Services ä¦; ·;㷞 CITY OF DENTON ä¦; ·;㷞 ELECTED OFFICIALS Mark A. Burroughs Mayor Term Expires: May 2014 Kevin Roden Dalton Gregory Jim Engelbrecht Council Member Council Member Council Member District 1 District 2 District 3 Term Expires: May 2013 Term Expires: May 2013 Term Expires: May 2013 Chris Watts Pete Kamp James King Council Member Mayor Pro Tem Council Member District 4 At Large Place 5 At Large Place 6 Term Expires: May 2013 Term Expires: May 2014 Term Expires: 9 CITYOFDENTON CURRENTORGANIZATIONALCHART 10 City of Denton, Texas Proposed Annual Program of Services CITY OF DENTON BOARDS, COMMISSIONS, AND COUNCIL COMMITTEES ADVISORY BOARDS JUDICIAL OR QUASI-JUDICIAL BOARDS AIRPORT ADVISORY BOARD CIVIL SERVICE COMMISSION ANIMAL SHELTER ADVISORY COMMITTEE HEALTH AND BUILDING STANDARDS COMMISSION COMMUNITY DEVELOPMENT ADVISORY COMMITTEE HISTORIC LANDMARK COMMISSION DOWNTOWN DENTON TAX INCREMENT FINANCING PLANNING AND ZONING COMMISSION REINVESTMENT ZONE BOARD ZONING BOARD OF ADJUSTMENT ECONOMIC DEVELOPMENT PARTNERSHIP BOARD HUMAN SERVICES ADVISORY COMMITTEE LIBRARY BOARD PARKS, RECREATION, AND BEAUTIFICATION BOARD PUBLIC ART COMMITTEE PUBLIC UTILITIES BOARD TRAFFIC SAFETY COMMISSION CITY COUNCIL COMMITTEES AGENDA COMMITTEE AIRPORT COMMITTEE AUDIT/FINANCE COMMITTEE COMMITTEE ON THE ENVIRONMENT COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE COUNCIL ETHICS COMMITTEE COUNCIL MOBILITY COMMITTEE HOTEL OCCUPANCY TAX COMMITTEE 11 City of Denton, Texas Proposed Annual Program of Services 12 City of Denton, Texas Proposed Annual Program of Services TABLE OF CONTENTS 2012-13 Mission Statement-----------------------------------------------3 Strategic Plan ------------------------------------------------- 4 Elected Officials-----------------------------------------------9 Organizational Chart--------------------------------------------10 City Boards, Commissions, and Council Committees----------------11 MANAGER'S MESSAGE and READER'S GUIDE 15 Manager's Message----------------------------------------------- 19 Budget Calendar------------------------------------------------- 20 Major Budget Documents------------------------------------------ 21 The Budget Process---------------------------------------------- 22 Organization of the Budget-------------------------------------- 22 Budgetary Policies---------------------------------------------- 23 Financial Structure--------------------------------------------- 23 Budgeted Funds-------------------------------------------------- 25 Budget Basis---------------------------------------------------- 25 Organizational Relationships------------------------------------ BUDGET OVERVIEW 27 Strategic Plan ------------------------------------------------- 29 Reserve Level--------------------------------------------------- 30 Revenues-------------------------------------------------------- 32 Expenditures---------------------------------------------------- 33 General Fund Expenditure Enhancements--------------------------- 39 Other Agency Contributions-------------------------------------- 39 Grants---------------------------------------------------------- 39 Capital Improvement Program------------------------------------- 41 Utilities------------------------------------------------------- 45 Miscellaneous and Internal Service Funds ---------------------- 50 Human Services Funding Recommendation--------------------------- 51 General Fund - Major Assumptions Five Year Forecast------------- 52 General Fund - Five Year Forecast------------------------------- 53 Water Fund - Five Year Forecast--------------------------------- 54 Wastewater Fund - Five Year Forecast---------------------------- 55 Solid Waste Fund - Five Year Forecast--------------------------- 13 City of Denton, Texas Proposed Annual Program of Services FINANCIAL SUMMARY 57 Budget Resource and Expenditure Summary------------------------- 58 Combined Expenditures by Classification------------------------- 60 Combined Appropriable Fund Balances----------------------------- 62 Combined Position Summary--------------------------------------- 63 General Fund Resource Summary----------------------------------- 67 General Fund Resource & Expenditure Summary--------------------- 68 Expenditures by Program Summary--------------------------------- 69 Estimated Ad Valorem Tax Collections & Distribution------------- 70 General Debt Service Fund Resource and Expenditure Summary ----- 71 Electric Fund Resource & Expenditure Summary-------------------- 72 Water Fund Resource & Expenditure Summary----------------------- 73 Water Fund Expenditures by Classification----------------------- 74 Wastewater Fund Resource & Expenditure Summary------------------ 75 Wastewater Fund Expenditures by Classification------------------ 76 Solid Waste Fund Resource & Expenditure Summary----------------- 77 Solid Waste Fund Expenditures by Classification----------------- 78 Airport Fund Resource & Expenditure Summary--------------------- 79 Technology Services Fund Resource & Expenditure Summary--------- 81 Materials Management Fund Resource & Expenditure Summary-------- 82 Fleet Management Fund Resource & Expenditure Summary------------ 83 Risk Retention Fund Resource & Expenditure Summary-------------- 84 Health Insurance Fund Resource & Expenditure Summary------------ 85 Street Improvement Fund Resource & Expenditure Summary---------- 86 Recreation Fund Resource & Expenditure Summary------------------ 87 Tourist and Convention Fund Resource and Expenditure Summary --- 88 Police Confiscation Fund Resource and Expenditure Summary ------ 89 Traffic Safety Fund Resource and Expenditure Summary ----------- 90 Non-Airport Gas Well Fund Resource and Expenditure Summary ----- 91 Parks Gas Well Fund Resource and Expenditure Summary ----------- 92 Tree Mitigation Fund Resource and Expenditure Summary ---------- 93 Public Education Government (PEG) Fund Resource and Expenditure 94 McKenna Trust Fund Resource and Expenditure Summary ------------ 95 Park Land Dedication Trust Fund Resource and Expenditure Summary 96 Park Development Trust Fund Resource and Expenditure Summary --- 97 Downtown Tax Increment Financing Fund (TIF) Resource and Expendi 98 Miscellaneous Special Revenue Funds Resource and Expenditure Sum 99 Grants Budget Expenditure Summary------------------------------- CAPITAL IMPROVEMENT PROGRAM 101 Capital Improvement Program ------------------------------------ 14 City of Denton, Texas Proposed Annual Program of Services 215E.MCKINNEY˜DENTON,TEXAS76201˜(940)3498200˜FAX(940)3497206 July 27, 2012 TO THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL: Pursuant to provisions of the City Charter and on behalf of the staff, I respectfully submit to you the FY 2012-13 Proposed Budget. The Proposed Budget has been developed to accomplish the goals and objectives that were outlined in the City of Denton’s Strategic Plan which was adopted in April 2011 and affirmed by the City Council during their annual planning retreat in January 2012. The Strategic Plan addresses five Key Focus Areas (KFAs): 1. Organizational Excellence 2. Public Infrastructure 3. Sustainable Economic Development and Environmental Stewardship 4. Safe, Livable, and Family Friendly Community, and 5. Partnerships and Regional Leadership. The Strategic Plan serves as a foundation for the development of this budget, and accordingly, enhancements to programs and/or funding is specifically discussed in the context of the Strategic Plan. While this budget makes many strides to implement the Strategic Plan, there are many objectives which will take several years to achieve. As such, the FY 2012-13 Proposed Budget should be considered the first of many steps in a long-term financial plan to achieve our goals. Fortunately, I am pleased to report several positive trends in major General Fund revenue sources which will enable us to continue making progress in achieving our objectives. Sales tax revenues have shown significant improvement throughout the year, and collections are expected to be 9.4% higher than the original budgeted amount for FY 2011-12 and 12.2% higher than the prior year actual. Similar to sales tax, property values have increased by 4.75% over the prior year tax roll. Together, with the significant expenditure reductions that have been made in prior years, the City of Denton is now financially well positioned to achieve our goals. In a citizen survey conducted in 2008 (results were presented to the City Council in 2009), respondents indicated additional emphasis was needed in maintaining and repairing streets throughout the City. In 2011, the Strategic Plan specifically identified improving our street infrastructure as a major goal, and through a detailed analysis, it was determined that $10 million 15 City of Denton, Texas Proposed Annual Program of Services in street maintenance funding was needed on an annual basis compared to the $2.8 million budgeted at that time just to maintain the current overall condition of our streets. In response to this goal, the FY 2011-12 Adopted Budget significantly increased street maintenance funding from $2.8 million to $3.5 million. In addition, the FY 2011-12 Adopted Budget created a standalone Street Improvement Fund to provide a dedicated mechanism to account for street maintenance and improvement activities. For the FY 2012-13 Proposed Budget, street maintenance funding is proposed to increase substantially again to approximately $4.2 million. Further, the five-year financial plan has been developed to increase maintenance funding for the City’s street infrastructure to approximately $7.6 million by FY 2016-17. While still below our goal, we are pleased to recommend this positive initiative to improve our City’s streets and set the stage for additional funding of street maintenance in the years to come. In addition, it is expected that the citizens of Denton will be asked to approve a $20.4 million bond program in November 2012 to fully reconstruct many of the streets in the community. Combined with the additional street maintenance funding outlined above, the City has taken a dramatic step to improve our roadways and fulfill the goals established in the Strategic Plan. In addition to improving the City’s street infrastructure, the enhancement of public safety in the community is also identified in the Strategic Plan as a major initiative. Accordingly, the FY 2012-13 Proposed Budget recommends approximately $1.3 million in funding enhancements for public safety programs. In particular, a new front line medic unit with staffing is proposed for the Fire Department, and additional personnel are also proposed for the Police Department to improve service delivery. Finally, the Proposed Budget includes increased funding and personnel for the new Animal Care and Adoption Center which is planned for construction beginning in 2013. The City also continues to strive to contain costs while providing essential services to the community. Over the past two fiscal years, the City instituted a “managed vacancies” program. Throughout the fiscal year, as position vacancies and attrition rates dictate, vacant positions are evaluated by City management and according to the needs of the organization, positions are filled or left vacant. For FY 2012-13, the managed vacancy program will be continued, and the savings for the fiscal year will be approximately $0.9 million. The overall FY 2012-13 Proposed Budget is $745.0 million and includes 1,402.33 full-time equivalent positions (FTEs). A comprehensive summary of the budget is provided in the Budget Overview section of this document. The key elements of the proposed budget include the following: No tax rate increase. The total tax rate is maintained at $0.68975 per $100 of assessed valuation. Of this amount, $0.47088 is provided for operations and maintenance and $0.21887 is provided for debt service. The effective tax rate is estimated at $0.68045. As detailed in the Budget Overview section of this document, a combined net increase of 48.15 FTEs for all funds compared to the FY 2011-12 estimate including: 7.27 FTEs in Neighborhood Services o 9.5 FTEs in Public Safety o 2.0 FTEs in Administrative and Community Services o 16 City of Denton, Texas Proposed Annual Program of Services 1.0 FTE in Airport o 3.0 FTEs in the Street Improvement Fund o 22.38 FTEs in Utilities o 1.0 FTE in Materials Management o 2.0 FTEs in Technology Services o An enhanced five-year Denton Municipal Electric (DME) capital improvement program for FY 2013-17. An increase in street maintenance funding of $0.7 million. No base rate increases for our Electric customers. An average base rate increase of 8.0% for our Water customers. An average base rate increase of 9.0% for our Wastewater customers. An increase in the monthly standard refuse cart fee from $19.25 to $20.10 and other Solid Waste fee changes as detailed in the Budget Overview section of this document. A 3% average merit increase for non-civil service employees (3% pay adjustment for civil service employees) and normally programmed step increases for Police and Fire civil service employees is proposed. In addition, funding has been included for equity pay adjustments for employees whose salary is below the market rate for their positions. The FY 2012-13 Proposed Budget has been developed within the context of a five-year financial plan. The purpose of this approach is to provide a long-term perspective for decisions in the coming fiscal year. As we develop future forecasts, we will continue to evaluate our ability to fund our strategic priorities and sustain a balance between revenues and expenditures. Each utility budget is also developed within the context of a long-range financial plan and is based on various financial strategies that support and strengthen the financial health of each utility. Additional rate increases are planned in the future to address aging infrastructure issues and ensure that adequate working capital and rate stabilization reserves are maintained. The Five-Year Financial Forecast will be reviewed and revised annually as necessary to support these utility financial objectives, and the key assumptions for these plans are described in this document. I sincerely thank the members of the Denton City Council for their hard work and dedication to the citizens of Denton. The input of the City Council and Public Utilities Board has been invaluable in the preparation of the FY 2012-13 Proposed Budget, Capital Improvement Plan (CIP), and Five-Year Financial Forecast. Appreciation is also expressed to members of the professional staff, particularly in the Finance Department for their diligence in the preparation of the Proposed Budget. It is an exciting time for the City of Denton. The Rayzor Ranch project is nearing completion on the northern section of the development, and the southern section of the project is planned to begin in the near future. A redevelopment of the Golden Triangle Mall and Fry Street areas is also underway to bring new features and amenities to the community. In addition, the City is beginning work to expand the Bonnie Brae Street and Mayhill Road thoroughfares. These significant roadway improvements are expected to cost approximately $114 million, with about $91 million being provided from Regional Toll Revenue (RTR) funds. 17 City of Denton, Texas Proposed Annual Program of Services Recently, the City completed the Downtown Implementation Plan (DTIP) and several developments are planned for this important section of the community. The Denton County Transportation Authority (DCTA) also voted to continue Friday night service of the A-Train offering citizen’s access to alternate transportation on the weekend. With these new developments, the downtown area is positioned for future growth. With significant investments in our organization, people, and infrastructure, I am confident that this Proposed Budget prepares the City of Denton for future success as well. With your support, and the dedication of our capable staff, we will ensure that quality services are provided to the citizens of Denton. Sincerely, George C. Campbell, City Manager 18 City of Denton, Texas Proposed Annual Program of Services BUDGET CALENDAR 2012-13 January 31 City Council Retreat Discussion of Strategic Goals. March 9 Internal Services Budget Due. March 27 Budget Kick-Off: Operating and Capital Improvement Program. April 30 Departmental budgets due to Budget Office (Operating and CIP). May 7 Public Utilities Board reviews Utility budgets and CIP. May 21 Public Utilities Board reviews Utility budgets and CIP. May 18-June 5 Budget reviews with City Manager. June 5 City Council Meeting Preliminary Five-Year Financial Forecast and Budget Discussions. June 11 Public Utilities Board reviews Utility budgets and CIP. June 25 Public Utilities Board approves Utility budgets and CIP. July 23 Certified appraisal rolls due from Denton Central Appraisal Dist July 27 Proposed budget and CIP submitted to City Council and placed on file w Submission of certified appraisal roll. Submission of ad valorem effective and rollback tax rates to Cit Submission of certified ad valorem collection rate to City Council. August 2 City Council Budget Workshop. August 7 Vote to Consider a Proposal for a Tax Increase Prior to Publishi Budget Work Session with the City Council. August 21 First Public Hearing on Tax Increase. (If necessary) Public Hearing on Budget. Budget Work Session with the City Council. August 28 Second Public Hearing on Tax Increase. (If necessary) Budget Work Session with the City Council. September 11 City Council adopts Annual Program of Services. City Council adopts first year of Capital Improvement Program bu City Council approves tax rate. City Council approves utility rates. City Council approves the 2012 tax roll. 19 City of Denton, Texas Proposed Annual Program of Services RG UIDE 2012-13 ANNUAL PROGRAM OF SERVICES (OPERATING BUDGET) Denton has prepared a budget designed to meet the highest standa document provides a summary of all budgeted funds, including bot budget documents, the budget process, and organization of the bu MBD AJOR UDGET OCUMENTS roduction of five key documents. It is important to understand the timing and purpose of these documents in order to fully unde 1. The Budget Instruction Manual - March Prior to budget development and training of departmental suppo is drafted and completed in March. This document serves as a de on annual budget highlights and specific development instruction calculations, format examples, and supplemental forms. 2. Long-Range Financial Forecast June In June, the City Council meets to discuss the preliminary Lon After this meeting, staff prepares a five-year forecast to address key service areas. The forecast is finalized at the end of July and included in the proposed budget 3. The Budget Overview - Late July The Budget Overview is submitted to the City Council in late July as part of the proposed budget. This report summarizes and identifies key issu expenditures for the coming year. 4. The Proposed Budget - Late July The proposed budget is submitted to the City Council in late July of each fiscal year. represents a balanced version of departmental budget requests ve proposed budget is a product of policy as expressed by the City Manager. 5. The Adopted Budget September The adopted budget represents a modified version of the propos City Council review in August/September. Any changes deemed nec levels or revenue projections are reflected in the adopted budge any updates to budget information. 20 City of Denton, Texas Proposed Annual Program of Services TBP HE UDGET ROCESS The City of Denton uses a program-oriented budgeting process. Ea "baseline" funding level based upon the previous year's funding level. Any and programs, or that is in excess of adjusted baseline funding, "package." 1. Budget Training for Support Staff/Budget Guideline Review Review March is the time when existing budget guidelines, procedures, be made to the budget process in order to make budget developmen changes. Preliminary budget training for departments is available prior training, staff is informed of budgeting concepts and the budget introduction to the City's budget forms. During budget kickoff, departments receive the budget instruct specific instructions and a review of any changes to the budget 2. Long-Range Financial Forecast A workshop is held in June with the City Council to discuss th Forecast for the city. After this meeting, staff refines the foto address key service areas. The recommended version of the forecast is included in the proposed budget document that is submitted to the City Council in July. 3. Revenue Projection The budget revenue projections for the new fiscal year begin e projections are made by the departments responsible for the reve Department staff. Projections are based upon consultations with analysis, anticipated changes in the local and regional economy, associated staff members. Although revenue projections are prep budget revenue analysis continues with departmental budget devel budget is adopted based upon any new information. 4. Proposed Budget Development During budget development, the Finance Department staff work w provide advice, and lend assistance. Budget requests are based additional funding is made in the form of supplemental requests. 5. Proposed Budget Analysis/Compilation Once division and departmental budget requests are completed, compiles a preliminary draft of departmental budgets to present comprised of the City Manager and Assistant City Managers. A total recommended funding level is determined from both baseline a packages. At this time, the funding level is weighed against ava or may not be recommended depending upon City Council program pr expressed in the budget process. 21 City of Denton, Texas Proposed Annual Program of Services 6. City Council Budget Study The proposed budget, including the Budget Overview, is compile appraised property value and other data are received. This report highlights and summarizes funding requirements, major changes in programs, and alternatives for fu A budget work session is held with the City Council to review Discussions and study may follow at subsequent work sessions unt 7. Public Hearing/Budget Adoption A public hearing on the budget and two public hearings on the September prior to final budget consideration. At the public hea comments concerning the proposed budget and tax rate. Budget adoption occurs in September after City Council deliber Council may take action to modify the proposed budget. The City support adopted funding levels. Pursuant to City Charter, the p Manager becomes the adopted budget if no City Council action is September 30. 8. Compilation of Adopted Budget/Budget Maintenance An adopted budget is compiled and published during the first m adopted budget in the form of an amended proposed budget is avai December. Budget maintenance is a year-round activity of the organizatio holds, position control reviews, and budget transfer authorizati Additional spending control mechanisms include monthly review of Department. During the budget process, departments make revenue and expend Finally, program goals, objectives, and measures are evaluated determine effectiveness of program activities and levels of appr OOTB RGANIZATION F HE UDGET Included in the Financial Summary schedule provides the projected appropriable fund balances antic2012-13 fiscal year-end fund balance is based on proposed 2012-13 revenue and expenditures. This information will be most helpful in determining whether fund balances are too high o Council. The General Fund Revenue Summary in the Financial Summ categories for the City of Denton, as well as, the various indiv BP UDGETARY OLICIES The City of Denton has developed administrative policies, which annual budget. These administrative policies are incorporated wi Procedures Manual. 22 City of Denton, Texas Proposed Annual Program of Services FS INANCIAL TRUCTURE The financial structure of the budget is organized by funds. A entity which has its own self-balancing set of accounts for reco any liabilities or residual equities or balances. Normally, funds activities or attaining certain objectives in accordance with sp when appropriate, funds are made up of departments. The two typ Governmental and Proprietary. The specific funds that make up t Recreation Fund, Street Improvement Fund, General Debt Service F Confiscation Fund, Traffic Safety Fund, Non-Airport Gas Wells Fu Public Education Government (PEG) Fund, McKenna Trust Fund, Park Funds, Downtown Tax Increment Financing (TIF) Fund, and Miscellaneous S Fund types are Electric Fund, Water Fund, Wastewater Fund, Solid Management Fund, Fleet Management Fund, Technology Services Fund Insurance Fund. Each of the above-mentioned funds operates sepa therefore, they are budgeted separately and include separate fin BF UDGETED UNDS General Fund The General Fund reflects the Cit safety, libraries, and parks. Debt Service Fund The Debt Service Fund is used to record and control the accumul payment of general obligation long-term debt principal and inter construct capital assets such as roads or parks for the general include an applicable portion of the ad valorem tax levy and rel service. Special Revenue Funds Special Revenue Funds are used to account for the receipt of spe sources that are restricted for expenditures for a specified pur funds are: the Recreation Fund, Street Improvement Fund, Tourist a Confiscation Fund, Traffic Safety Fund, Non-Airport Gas Wells Fu Mitigation Fund, Public Education Government (PEG)Fund, McKenna and Development Trust Funds, Downtown Tax Increment Financing Fu Revenue Funds. Recreation Fund The Recreation Fund is used to account for the Parks and Recreat such -supporting. Street Improvement Fund The purpose of the fund is to provide a dedicated mechanism to a for street maintenance and improvement activities. The fund wil the franchise fees previously accounted for in the General Fund, reimbursements. Additionally, interest cost savings associated w Obligation in lieu of Revenue Bonds will also be recorded as rev Downtown Tax Increment Financing Fund The TIF fund will be used for downtown development projects, and it accounts for the tax revenues that are collecte downtown area. 23 City of Denton, Texas Proposed Annual Program of Services Tourist and Convention Fund Occupancy Tax, which is levied at 7% of room rental rates. Each contracts with various organizations that will promote tourism a industry in Denton. Police Confiscation Fund The Police Confiscation Fund is used to record the receipt and e of confiscated contraband that is used in the commission of a va Expenditures from this fund are allocated to the Police Departme operations costs. Traffic Safety Fund The Traffic Safety Fund is used to record the receipt of citatio camera violations. Revenues from this fund are used for material operations in the Police Department and Traffic Department. Non-Airport Gas Wells Fund The Non-Airport Gas Wells Fund is used to record the receipt of royalty, pooling, tax, and lease revenue related to gas wells. E for projects with no ongoing costs. Parks Gas Well Fund - The Parks Gas Well Fund was established to record the receipt of gas well revenues on park property. Expenditures from this fund projects. Tree Mitigation Fund The Tree Mitigation Fund is used to purchase, plant, and mainta public property, to preserve wooded property that remains in a n perform and maintain a citywide tree inventory, and to educate c benefits and value of trees. Public Education Government (PEG) Fund The PEG Fund provides for the acquisition of production equipment, capital, and other lawful PEG purposes. PEG fees are basis from cable subscribers. McKenna Trust Fund The McKenna Trust Fund is used to account for interest received George McKenna Trust, which was established in 1958 and is currently managed by JP Morgan Chase Bank. One half of the net income from this trust Fort Worth and one half of the net income is distributed to the maintaining, developing, preserving, and improving the George Mc Park Land Dedication and Development Trust Funds The Park Land Dedication and Development Trust Funds are funds received from developers. These fees provide for neigh projects within ½ to 1 mile radius of the development. The Park Land Dedication on Owsley Park, Milam Park, Carl Young Park and Mack Park. The P include neighborhood parks at Owsley Park, McKamy-Evers Park and Miscellaneous Special Revenue Funds The Miscellaneous Special Revenue Funds are comprised of the Animal Control Donation Fund, Police Donation Fund, and Fire Enterprise Funds Enterprise funds are used to account for governmental activitie those found in private businesses. The City budget includes Ele, and AirportEnterprise Funds. Each fund reflects the services denoted in th major revenue source for these enterprise funds is the rate reve receive the services provided. Internal Service Funds Internal Service Funds are used to account for the financing of provided by one department to another department within the same Financing is based on reimbursement of actual costs. The interna Technology Services, Materials Management, Risk Retention, and H fund listed is funded through payments from various City departm from the specific fund. 24 City of Denton, Texas Proposed Annual Program of Services Fleet Management Fund - The Fleet Management Fund accounts for the maintenance and re Technology Services Fund The Technology Services Fund provides computer services such as urces and telephone maintenance. Materials Management Fund The Materials Management Fund is comprised of purchasing and warehouse operations. This internal service fund is responsible City departments and the warehouse maintains an inventory of mat departments. Risk Retention Fund The Risk Retention Fund records the activities associated with general liability insurance coverage and self funded activities Health Insurance Fund The Health Insurance Fund accommodates self-insurance operation BB UDGET ASIS The budget for the General, Special Revenue, Debt Service, and C prepared on the modified accrual basis of accounting. Under thi they become both "measurable" and "available" to finance expendi accrual basis is specified by generally accepted accounting prin fund liability is incurred, except for (1) inventories of materi either when purchased or when used; (2) prepaid insurance and si accumulated unpaid vacation, sick pay, and other employee benefi current period; (4) interest on special assessment indebtedness accrued, if approximately offset by interest earnings on special long-term debts which are generally recognized when due. Budget are prepared on the full accrual basis of accounting under which regardless of timing or related cash flows. OR RGANIZATIONAL ELATIONSHIPS A department is a major administrative segment of the City, which an operation or a group of related operations within a functiona the division. The division indicates responsibility for one fun are put together to demonstrate a broader responsibility. When a department. 25 City of Denton, Texas Proposed Annual Program of Services 26 City of Denton, Texas Proposed Annual Program of Services KeyFocusArea1:OrganizationalExcellence Goal1.1Managefinancialresourcesinaresponsiblemanner. Goal1.2Developahighperformanceworkforce. Goal1.3Promoteeffectiveinternalandexternalcommunication. Goal1.4Provideexemplarycustomerservice. Goal1.5Utilizetechnologytoenhanceefficiencyandproductivity. KeyFocusArea2:PublicInfrastructure Goal2.1OptimizeresourcestoimprovequalityofCityroadways. Goal2.2Seeksolutionstomobilitydemandsandenhanceconnectivity. Goal2.3Promotesuperiorutilityservicesandfacilities. Goal2.4Managedrainageinfrastructure. Goal2.5DevelopCapitalImprovementProgram(CIP)basedoncommunityneeds. KeyFocusArea3:SustainableEconomicDevelopment&EnvironmentalStewardship Goal3.1Manageandfacilitategrowth,development,andredevelopmentopportunities. Goal3.2Encourageeconomicdevelopment. Goal3.3Promoteenvironmentalsustainability. KeyFocusArea4:Safe,LivableandFamilyFriendlyCommunity Goal4.1Enhancepublicsafetyinthecommunity. Goal4.2SeekcleanandhealthyneighborhoodsintheCityofDenton. Goal4.3Providequality,diverse,andaccessibleneighborhoodservicesforthecommunity. KeyFocusArea5:PartnershipsandRegionalLeadership Goal5.1Activelyparticipateinregional,state,andfederalinitiatives. Goal5.2Maintainvisibleandeffectiverelationshipswithgovernmentalandnon governmentalorganizations. 27 City of Denton, Texas Proposed Annual Program of Services 28 City of Denton, Texas Proposed Annual Program of Services RESERVELEVEL AsofAsofEstimated 9/30/109/30/119/30/129/30/13 $21,526,779$24,424,003$25,747,978$25,083,084 Ending Balance 23.6%27.1%29.1%26.6% %ofTotal Expenditures 20%20%20% 1215% TargetGoal% 29 City of Denton, Texas Proposed Annual Program of Services RREVENUES AdVValoremTaxSalesTaxFranchiseFeesTransferrsInFees,Permits,UseoofReserves 15% 34% 15% 8% 28% PrropertyTax 10YearHistory:PropertyVaalueGrowth (AnnualPPercentageChannges) 2003 9.15% 2004 8.23% 2005 9.477% 2006 13.61% 2007 11.911% 2008 3.311% 2009 0.58%% 2010 1.60%% 2011 2.93%% 2012 4.75% 2%3%88%13%18% 30 City of Denton, Texas Proposed Annual Program of Services CertifiedValuesandTaxRateHistory FiscalYearCertifiedAssessedOperationsandDebtServiceTotalTax ValueMaintenanceTaxTaxRateRate Rate 200304 200405 200506 200607 200708 200809 200910 201011 201112 201213* SalesTax SalesTaxHistorybyFiscalYear(WithPercentageIncreasesNoted) (inmillions) $30 12.2% 3.2% 8.8% 4.2% 0.3% 7.1% 3.7% 4.7% 7.5% 7% $20 $10 $0 31 City of Denton, Texas Proposed Annual Program of Services FranchiseFees OtherMajorRevenues EXPENDITURES 32 City of Denton, Texas Proposed Annual Program of Services GeneralFundExpenditureEnhancements EnhancementsbyServiceCategory $1,251,480 PublicSafety $1,251,480 Transportation $1,166,053 NeighborhoodServices $671,745 Administrative&CommunityServices $338,836 0%5%10%15%20%25%30%35%40% %ofTotalEnhancementsReceived PUBLICSAFETY($1,251,480inTotalEnhancements) KEYFOCUSAREA4:SAFE,LIVABLE,&FAMILYFRIENDLYCOMMUNITY F 33 City of Denton, Texas Proposed Annual Program of Services P M A TRANSPORTATION($1,166,053inTotalEnhancements) KEYFOCUSAREA2:PUBLICINFRASTRUCTURE T 34 City of Denton, Texas Proposed Annual Program of Services NEIGHBORHOODSERVICES($671,745inTotalEnhancements) KEYFOCUSAREA3:SUSTAINABLEECONOMICDEVELOPMENT&ENVIRONMENTALSTEWARDSHIP; KEYFOCUSAREAS4:SAFE,LIVABLE,&FAMILYFRIENDLYCOMMUNITY L B P 35 City of Denton, Texas Proposed Annual Program of Services P ADMINISTRATIVE&COMMUNITYSERVICES($338,836inTotalEnhancements) KEYFOCUSAREA1:ORGANIZATIONALEXCELLENCEKEYFOCUSAREA2:PUBLICINFRASTRUCTURE; KEYFOCUSAREA3:SUSTAINABLEECONOMICDEVELOPMENT&ENVIRONMENTALSTWEARDSHIP F P 36 City of Denton, Texas Proposed Annual Program of Services F E OtherExpenditureItems 37 City of Denton, Texas Proposed Annual Program of Services Compensation CompensationIncreaseHistory FiscalYearCompensationEquivalent(NonCivilService) 201011 201112 201213 CivilServiceCompensationIncreasesHistory FiscalYearCompensationEquivalent 201011 201112 201213 38 City of Denton, Texas Proposed Annual Program of Services OtherAgencyContributions Grants CapitalImprovementProgram 39 City of Denton, Texas Proposed Annual Program of Services Working Capital Rate Stabilization Total Equivalent Daysof Operating Expenses 40 City of Denton, Texas Proposed Annual Program of Services UTILITYFUNDS KEYFOCUSAREA2:PUBLICINFRASTRUCTURE Rates PersonnelChanges o o ReturnonInvestment(ROI)andFranchiseFee MajorCIPProjects 41 City of Denton, Texas Proposed Annual Program of Services TreatedWaterSalesbyCustomerType(InBillionsofGallons) RetailCustomers WholesaleCustomers Total Rates PersonnelChanges MajorCIPProjects 42 City of Denton, Texas Proposed Annual Program of Services WastewaterBilledVolumes(InBillionsofGallons) Retail Effluent Wholesale Total Rates PersonnelChanges MajorCIPProjects 43 City of Denton, Texas Proposed Annual Program of Services SolidWasteProduction(InTons) FY201112FY201213Difference GrossTonsofWaste RecycledTons TotalLandfillTonnage172,734178,7366,002 RatesandFees RateIncreaseFY201112FY201213Variance ResidentialRefuse(Standard Cart) ResidentialRefuse(Large Cart) ResidentialRefuse(Small Cart) ResidentialRecycling CommercialDumpster CommercialRollOff Landfill PersonnelChanges MajorCIPProjects 44 City of Denton, Texas Proposed Annual Program of Services UtilityRateChangeSummary FY2012FY2013Increase%Change Total MiscellaneousandInternalServiceFunds 45 City of Denton, Texas Proposed Annual Program of Services FY2013FY2014FY2015FY2016FY2017 46 City of Denton, Texas Proposed Annual Program of Services 47 City of Denton, Texas Proposed Annual Program of Services 48 City of Denton, Texas Proposed Annual Program of Services 49 City of Denton, Texas Proposed Annual Program of Services 50 City of Denton, Texas Proposed Annual Program of Services 51 City of Denton, Texas Proposed Annual Program of Services 52 City of Denton, Texas Proposed Annual Program of Services 53 City of Denton, Texas Proposed Annual Program of Services 54 City of Denton, Texas Proposed Annual Program of Services 55 City of Denton, Texas Proposed Annual Program of Services 56 City of Denton, Texas Proposed Annual Program of Services BUDGET RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCES ACTUALBUDGETESTIMATE PROPOSED General Fund $ 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286 General Debt Service Fund 31,361,366 39,575,035 39,240,749 40,462,208 Electric Fund 131,797,060 142,027,668 131,620,878 158,987,525 Water Fund 39,955,662 38,740,430 38,551,368 43,867,930 Wastewater Fund 23,456,113 25,105,047 24,996,509 28,252,407 Solid Waste Fund 21,203,005 23,073,303 22,840,671 25,147,589 Airport Fund 11,923,294 2,170,000 1,885,544 2,492,925 Technology Services Fund 6,619,733 8,025,502 8,023,532 8,972,973 Materials Management Fund 8,944,927 6,102,754 5,400,015 7,438,866 Fleet Management Fund 9,139,046 13,277,347 10,733,185 12,867,975 Risk Retention Fund 2,835,622 2,731,038 2,570,027 2,719,945 Health Insurance Fund 17,757,006 18,524,862 19,953,113 21,812,160 Street Improvement Fund - 7,066,972 7,322,553 7,158,774 Recreation Fund 1,426,681 1,605,351 1,530,496 1,950,348 Tourist & Convention Fund 1,513,468 1,461,103 1,508,740 1,508,740 Police Confiscation Fund 112,253 216,748 121,146 185,500 Traffic Safety Fund 668,227 385,000 895,316 913,200 Non-Airport Gas Well Fund 392,900 1,600,000 1,600,000 40,000 Parks Gas Well Fund 474,881 350,000 416,610 800,000 (1) Miscellaneous Funds 1,285,342 968,049 1,331,596 944,191 TOTAL OPERATING RESOURCES$ 401,107,654$ 421,468,959$ 409,444,155$ 460,843,542 Grant Program 6,657,580 7,074,219 2,640,594 6,296,010 (2) Capital Improvements Program 51,671,497 162,714,356 57,067,945 278,909,663 TOTAL RESOURCES$ 459,436,731$ 591,257,534$ 469,152,694$ 746,049,215 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATE PROPOSED General Fund $ 87,343,844$ 88,462,750$ 87,578,132$ 94,320,286 General Debt Service Fund 31,361,366 39,075,952 38,925,663 39,913,999 Electric Fund 122,320,215 140,391,103 131,620,878 158,987,525 Water Fund 35,610,365 38,740,430 37,833,377 43,867,930 Wastewater Fund 22,559,372 24,801,568 24,362,108 28,252,407 Solid Waste Fund 20,824,008 22,904,336 22,814,999 25,124,689 Airport Fund 1,818,493 1,669,896 1,622,663 2,492,925 Technology Services Fund 6,619,733 8,025,502 8,023,532 8,972,973 Materials Management Fund 8,944,927 6,102,754 5,400,015 7,438,866 Fleet Management Fund 9,139,046 13,269,934 10,680,832 12,819,861 Risk Retention Fund 2,172,300 2,731,038 2,570,027 2,719,945 Health Insurance Fund 17,206,842 18,524,862 19,953,113 21,812,160 Street Improvement Fund - 6,145,193 6,143,594 7,158,774 Recreation Fund 1,426,681 1,605,351 1,530,496 1,950,348 Tourist & Convention Fund 1,250,249 1,315,360 1,315,360 1,508,740 Police Confiscation Fund 73,114 207,000 121,000 155,000 Traffic Safety Fund 668,227 377,000 837,884 896,505 Non-Airport Gas Wells Fund 392,900 1,600,000 1,600,000 40,000 Parks Gas Well Fund 53,000 350,000 350,000 800,000 (1) Miscellaneous Funds 700,472 939,605 882,490 554,427 TOTAL OPERATING EXPENDITURES$ 370,485,154$ 417,239,634$ 404,166,163$ 459,787,360 Grant Program 6,657,580 7,074,219 2,640,594 6,296,010 (2) Capital Improvements Program 51,671,497 162,714,356 57,067,945 278,909,663 TOTAL EXPENDITURES$ 428,814,231$ 587,028,209$ 463,874,702$ 744,993,033 (1) Miscellaneous Funds include the Tree Mitigation Fund, Public Edu Tax Increment Financing Fund, Miscellaneous Special Revenue Fund Trust Fund. (2) FY 2012-13 Proposed Budget includes approximately $91 million in Mayhill Road and Bonnie Brae Street expansion projects. 57 City of Denton, Texas Proposed Annual Program of Services BUDGET SUMMARY EXPENDITURES BY CLASSIFICATION 2012-13 GENERAL DEBTSOLID CATEGORYGENERAL SERVICEELECTRICWATERWASTEWATERWASTEAIRPORT Personal Services$ 68,925,863$ -$ -$ 11,049,920$ 6,910,361$ 8,398,223$ 503,380 Purchased Power - - 100,928,672 1,595,500 821,000 - - Materials & Supplies 2,033,820 - - 1,694,929 910,128 292,644 46,725 Maintenance & Repair 2,406,079 - - 1,243,446 1,287,347 455,675 78,997 Insurance 1,029,951 - - 203,693 135,833 168,962 18,563 Miscellaneous 1,015,319 - 21,717,613 99,548 44,381 60,322 1,500 Operations 12,111,587 - 25,890,126 2,624,276 2,315,667 6,242,914 219,388 Fixed Assets 787,953 - - 42,000 10,000 370,000 - Return on Investment - - 4,303,400 1,140,060 762,650 - - Franchise Fees - - 6,147,714 1,618,168 1,089,501 1,241,561 36,071 Debt Service - 39,913,999 - 13,209,294 6,751,660 5,378,055 226,648 Inventory Inventory Purchases - - - - - - - Transfers 6,009,714 - - 9,347,096 7,213,879 2,516,333 1,361,653 TOTAL$ 94,320,286$ 39,913,999$ 158,987,525$ 43,867,930$ 28,252,407$ 25,124,689$ 2,492,925 * Other Funds include the Police Confiscation Fund, the Tourist the Parks Gas Well Fund, the Tree Mitigation Fund, the PEG Fund, Special Revenue Funds, the Park Development Trust Fund, the Rece 58 City of Denton, Texas Proposed Annual Program of Services BUDGET SUMMARY EXPENDITURES BY CLASSIFICATION 2012-13 STREET TECHNOLOGYMATERIALSFLEETRISK HEALTHIMPROVEMENTOTHER SERVICES MANAGEMENTMANAGEMENTRETENTIONINSURANCEFUNDFUNDS *TOTAL $ 2,931,736$ 1,122,540$ 1,742,128$ 554,893$ -$ 2,141,141$ 654,658$ 104,934,843 - - - - - - - 103,345,172 386,219 28,353 155,220 9,500 - 67,706 601,707 6,226,951 2,604,342 9,652 96,000 148,000 - 4,257,024 216,954 12,803,516 24,463 17,357 83,652 1,205,650 21,812,160 47,751 20,434 24,768,469 - 1,000 1,250,000 226,000 - 6,000 - 24,421,683 1,370,878 81,230 3,184,210 351,236 - 557,647 3,959,436 58,908,595 612,122 - - - - - 300,000 2,122,075 - - - - - - - 6,206,110 - - - - - - - 10,133,015 246,369 45,287 258,185 - - - - 66,029,497 - 5,334,970 5,500,150 - - - - 10,835,120 796,844 798,477 550,316 224,666 - 81,505 151,831 29,052,314 $ 8,972,973$ 7,438,866$ 12,819,861$ 2,719,945$ 21,812,160$ 7,158,774$ 5,905,020$ 459,787,360 59 City of Denton, Texas Proposed Annual Program of Services PROJECTEDAPPROPRIABLEFUNDBALANCES 201213 APPROPRIABLEESTIMATEDESTIMATED (1) FUNDBALANCEREVENUESEXPENDITURES 10111201112201112 EnterpriseFunds InternalServiceFunds SpecialRevenueFunds TOTAL 60 City of Denton, Texas Proposed Annual Program of Services PROJECTEDAPPROPRIABLEFUNDBALANCES 201213 PROJECTEDPROPOSEDPROPOSEDPROJECTED APPROPRIABLEBUDGETEDBUDGETEDAPPROPRIABLE (1)(1) FUNDBALANCEREVENUESEXPENDITURESFUNDBALANCE 9301220121320121393013 61 City of Denton, Texas Proposed Annual Program of Services POSITION SUMMARY 2012-13 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED Neighborhood Services 227.81 228.81 227.31 234.58 Public Safety 406.98 407.98 408.98 418.48 Transportation 39.00 14.00 14.00 14.00 Administrative & Community Services 85.50 88.00 87.75 89.75 TOTAL GENERAL FUND 759.29 738.79 738.04 756.81 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED Electric Fund 129.50 131.50 131.50 143.00 Water Fund 157.50 158.00 158.00 161.00 Wastewater Fund 88.37 92.37 92.37 95.25 Solid Waste Fund 98.50 105.50 105.50 110.50 Airport Fund 5.00 5.00 5.50 6.50 Street Improvement Fund - 27.00 27.00 30.00 Technology Services Fund 27.00 27.00 27.00 29.00 Materials Management Fund 13.50 12.00 12.00 13.00 Fleet Management Fund 21.00 31.00 22.00 22.00 Risk Retention Fund 5.00 6.00 6.00 6.00 Recreation Fund 24.27 24.27 24.27 24.27 Public Education Government Fund 1.50 - - - Community Development Block Grant Prog. 6.00 5.00 5.00 5.00 TOTAL OTHER FUNDS 577.14624.64616.14645.52 TOTAL ALL FUNDS 1,336.43 1,363.43 1,354.18 1,402.33 62 City of Denton, Texas Proposed Annual Program of Services GENERAL FUND RESOURCE SUMMARY 2012-13 2010-112011-122011-122012-13 DESCRIPTIONACTUALBUDGETESTIMATE PROPOSED Current Year Ad Valorem$ 29,654,055$ 30,183,756$ 30,183,756$ 31,579,391 Delinquent Ad Valorem 259,749 416,745 349,000 359,470 Current Year - Penalties and Interest 183,511 230,496 165,000 169,950 Prior Year - Penalties and Interest 124,521 149,205 149,205 153,681 Rendition Penalties 17,913 22,638 22,638 23,317 Ad Valorem Taxes$ 30,239,749$ 31,002,840$ 30,869,599$ 32,285,809 Sales Tax $ 22,871,281$ 23,446,578$ 25,655,444$ 26,466,107 Sales Tax$ 22,871,281$ 23,446,578$ 25,655,444$ 26,466,107 Franchise - Atmos Gas $ 1,145,119$ 677,636$ 677,636$ 640,389 Franchise - Charter Communications 398,105 219,865 219,865 218,852 Franchise - CoServ Electric 219,071 113,984 113,984 123,104 Franchise - TXU Electric 72,801 42,556 42,556 40,217 Franchise - CoServ Gas 152,783 84,446 84,446 83,711 Franchise - Miscellaneous Cable 54,235 25,000 25,000 27,357 ROW - DISD Fiber 27,500 15,921 15,921 14,751 Franchise - Verizon Telecommunications 617,913 413,609 413,609 305,750 Franchise - Verizon -Cable 1,008,066 480,773 480,773 574,487 Franchise - Telecommunications 235,667 118,977 118,977 128,576 (1) Franchise - DMU Electric 6,113,728 3,511,736 3,511,736 3,297,649 (1) Franchise - DMU Water 1,438,172 857,266 857,266 867,990 (1) Franchise - DMU Wastewater 857,616 567,909 567,909 584,411 Franchise - Solid Waste 1,028,873 650,930 650,930 665,977 Franchise - Airport 39,962 20,275 20,275 19,349 Franchise Agreements$ 13,409,611$ 7,800,883$ 7,800,883$ 7,592,570 Mixed Beverage Tax$ 359,671$ 272,494$ 272,494$ 277,944 Bingo Tax 21,963 24,970 24,970 25,469 Other Taxes$ 381,634$ 297,464$ 297,464$ 303,413 Denton Municipal Utilities. (1) 63 City of Denton, Texas Proposed Annual Program of Services GENERAL FUND RESOURCE SUMMARY 2012-13 2010-112011-122011-122012-13 DESCRIPTIONACTUALBUDGETESTIMATE PROPOSED Community Building Rentals$ 310,755$ 226,350$ 300,000$ 310,500 Ambulance Service Fees 2,374,337 2,575,000 2,400,000 2,472,000 Hazardous Materials Billing 1,789 1,900 1,900 1,900 Fire Inspections 184,666 178,500 185,000 223,700 Restaurant Inspections 196,933 206,000 206,000 212,180 Swimming Pool Inspections 25,570 35,700 35,700 36,414 Reinspection Fees 14,963 18,025 18,025 18,566 Electrical Inspections 38,138 38,110 45,000 46,350 Plumbing Inspections 86,219 111,100 96,300 97,263 Gas Well Inspections 106,620 204,921 350,000 350,000 Library Non-Resident Fees 35,823 42,420 42,420 42,844 Parks Identification Card Fees 22,863 25,500 25,500 26,010 Athletic Program Fees 67,659 71,482 71,482 73,626 Special Events - Parks 1,350 1,683 1,683 1,717 Natatorium Fees 284,673 335,335 335,335 377,800 Water Works Parks Fees 706,465 729,341 729,341 779,686 Charges to Bond Fund 152,870 232,836 232,836 122,000 Swimming Pool 48,657 50,000 50,000 51,000 Cemetery Fees 28,645 24,000 24,000 24,720 Development Fees 350,986 310,000 350,000 360,500 External Development Review Fees 24,900 84,660 - - Sale of Documents 226 510 510 520 Plan Review Fees 402,726 272,950 240,000 247,200 Parking Meter Receipts 24,691 18,437 18,437 18,990 Development Postage 8,609 8,312 8,312 8,395 Traffic/Police Reports 32,155 37,944 37,944 38,703 Street Cut Reimbursements 121,687 - - - Animal Carcass Pick-Ups 660 1,377 1,377 1,405 Interest Charge Past Due Balance 915 - - - Service Fees$ 5,656,550$ 5,842,393$ 5,807,102$ 5,943,989 64 City of Denton, Texas Proposed Annual Program of Services GENERAL FUND RESOURCE SUMMARY 2012-13 2010-112011-122011-122012-13 DESCRIPTIONACTUALBUDGETESTIMATE PROPOSED Warrant Fees$ 241,298$ 284,625$ 284,625$ 294,587 Juvenile Case Manager Fees 117,161 132,600 132,600 135,252 Library Fines & Fees 195,888 189,520 189,520 195,206 Animal Pound Fees 231,302 194,169 202,000 208,060 Animal Services Fines 11,606 9,270 12,000 12,360 Auto Pound Fees 5,486 6,000 10,000 10,000 Mowing Recovery Fees 9,104 4,040 4,040 4,080 Police Escort & Guard Fees 18,075 22,248 22,248 22,915 Civil Fines 27,347 30,900 30,900 31,827 Arrest Fees 115,857 121,200 121,200 122,412 Inspection Fines & Fees 38,524 78,294 39,000 40,170 Fire Department Fines 5,800 3,570 3,570 3,641 School Crossing Fines 11,456 12,240 12,240 12,485 Denton Municipal Fines 1,684,018 1,771,600 1,600,000 1,648,000 UNT Police Fines 167,242 229,500 210,000 214,200 TWU Police Fines 30,741 27,540 37,000 37,740 Parking Fines 56,741 58,710 250,000 257,500 Uniform Traffic Fees 53,923 66,100 66,100 67,422 False Alarm Fees 57,516 38,760 57,000 58,140 Court Cost Service Fees 187,491 192,400 192,400 200,096 Court Administration Fees 949,671 1,029,600 950,000 988,000 Fines and Fees$ 4,216,247$ 4,502,886$ 4,426,443$ 4,564,093 Food Handler Permits$ 61,470$ 59,405$ 62,000$ 63,240 Zoning Permits 60,422 72,800 72,800 75,712 Moving Permits 470 1,010 1,200 1,212 Demolition Permits 6,590 9,180 9,180 9,364 Pool, Spa, Hot Tub Permits 12,950 12,875 12,875 13,261 Building Permits 1,026,594 825,000 825,000 849,750 Electrical & Plumbing Licenses 16,700 15,300 15,300 15,606 Curb Cut Permits 714 918 918 936 Mobile Home Park Licenses 11,410 11,410 11,410 11,410 Sign Permits 33,935 35,000 35,000 36,050 Fence Permits 18,328 22,440 22,440 22,889 Mechanical Permits 49,273 41,200 41,200 42,436 Certificate of Occupancy Fees 71,820 65,000 65,000 67,600 Variance Fees 150 773 773 796 Landscape Fees 1,950 2,060 2,060 2,122 Temporary Gas Permits 9,489 6,500 6,500 6,695 Gas Well Permits 41,100 155,530 155,530 160,196 Park Vendor Fees 20,220 24,180 25,000 25,250 Beer & Wine Permits 9,288 25,000 25,000 4,080 CPR Training 7,675 4,545 4,545 4,590 Licenses and Permits$ 1,460,548$ 1,390,126$ 1,393,731$ 1,413,195 65 City of Denton, Texas Proposed Annual Program of Services GENERAL FUND RESOURCE SUMMARY 2012-13 2010-112011-122011-122012-13 DESCRIPTIONACTUALBUDGETESTIMATE PROPOSED Interest Income$ 172,719$ 250,000$ 225,000$ 225,000 County Vehicle Registration Fee 140,699 130,391 141,000 142,410 County Contribution - Ambulance Service 139,642 140,000 140,000 140,000 DISD Reimbursement - Water Park 375,140 452,632 452,632 466,211 DISD Contribution - School Resource Officer 124,008 138,018 138,018 140,778 State - Signal Reimbursement 16,082 16,062 16,062 16,062 Non-Grant State Reimbursement - Fire 6,919 - 38,773 2,500 Williams Square Parking Fees 16,538 15,000 15,000 15,000 Miscellaneous Revenues 100,501 156,000 156,000 156,001 Grant Revenues 23,059 - 51,346 5,000 Recovery of Prior-Year Expenditures 49,345 108,000 108,000 108,000 Mowing Administration Fees 3,750 2,550 2,550 2,601 Mowing Liens 14,283 8,400 25,000 26,250 Police Phone Commissions 8,609 10,000 10,000 10,300 Sale of Surplus Supplies and Fixed Assets 90,699 115,000 91,000 91,000 Miscellaneous Revenues$ 1,281,993$ 1,542,053$ 1,610,381$ 1,547,113 Return on Investment - Water $ 1,006,720$ 1,043,772$ 1,050,328$ 1,140,060 Return on Investment - Wastewater 600,331 686,648 683,499 762,650 Return on Investment - Electric 4,279,609 4,245,968 4,235,989 4,303,400 Return on Investment - Airport 27,973 19,832 19,832 - Admin Transfer - Bond Sale 101,915 - - - Cost of Service Transfer - Electric Fund 1,414,008 1,475,624 1,475,624 1,614,375 Cost of Service Transfer - Water Fund 1,316,109 1,398,972 1,398,972 1,631,715 Cost of Service Transfer - Solid Waste Fund 774,657 797,897 797,897 888,373 Cost of Service Transfer - Wastewater Fund 713,683 735,093 735,093 969,706 Cost of Service Transfer - Airport 178,124 178,124 178,124 294,997 Cost of Service Transfer - Risk Retention Fund 66,848 124,794 124,794 183,520 Cost of Service Transfer - Insurance Fund - - - 19,473 Cost of Service Transfer - Recreation Fund 152,168 156,733 156,733 80,668 Cost of Service Transfer - Municipal Crt Security 71,006 100,000 100,000 100,000 Cost of Service Transfer - Fleet Services - - - 371,303 Cost of Service Transfer - Materials Management - - - 709,589 Cost of Service Transfer - Technology Services - - - 469,274 Cost of Service Transfer - Other 20,304 84,175 84,175 - Transfers$ 10,723,455$ 11,047,632$ 11,041,060$ 13,539,103 TOTAL REVENUES$ 90,241,068$ 86,872,855$ 88,902,107$ 93,655,392 Use of Fund Balance$ -$ 1,589,895$ -$ 664,894 TOTAL RESOURCES$ 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286 66 City of Denton, Texas Proposed Annual Program of Services GENERAL FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Ad Valorem Taxes$ 30,239,749$ 31,002,840$ 30,869,599$ 32,285,809 Sales Tax 22,871,281 23,446,578 25,655,444 26,466,107 Franchise Agreements 13,409,611 7,800,883 7,800,883 7,592,570 Total Other Taxes 381,634 297,464 297,464 303,413 Service Fees 5,656,550 5,842,393 5,807,102 5,943,989 Fines and Fees 4,216,247 4,502,886 4,426,443 4,564,093 Licenses and Permits 1,460,548 1,390,126 1,393,731 1,413,195 Miscellaneous Revenues 1,281,993 1,542,053 1,610,381 1,547,113 Transfers 10,723,455 11,047,632 11,041,060 13,539,103 TOTAL REVENUES$ 90,241,068$ 86,872,855$ 88,902,107$ 93,655,392 Use of Reserves - 1,589,895 - 664,894 TOTAL RESOURCES$ 90,241,068$ 88,462,750$ 88,902,107$ 94,320,286 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED Personal Services$ 63,467,185$ 64,702,421$ 64,069,723$ 68,925,863 Materials & Supplies 1,916,248 1,855,499 1,855,499 2,033,820 Maintenance & Repairs 4,855,465 2,282,517 2,304,960 2,406,079 Insurance 1,282,627 1,017,202 1,017,202 1,029,951 Miscellaneous 440,465 904,930 621,254 1,015,319 Operations 10,450,389 11,301,849 11,244,860 12,111,587 Transfers 4,363,424 5,705,379 5,771,681 6,009,714 Fixed Assets 568,041 692,953 692,953 787,953 TOTAL EXPENDITURES$ 87,343,844$ 88,462,750$ 87,578,132$ 94,320,286 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED Neighborhood Services 227.81 228.81 227.31 234.58 Public Safety 406.98 407.98 408.98 418.48 Transportation 39.00 14.00 14.00 14.00 Adminstrative & Community Services 85.50 88.00 87.75 89.75 TOTAL PERSONNEL 759.29 738.79 738.04 756.81 67 City of Denton, Texas Proposed Annual Program of Services GENERALFUND EXPENDITURESBYPROGRAMSUMMARY 201213 201011201112201112201213 ACTUALBUDGETESTIMATEPROPOSED NEIGHBORHOODSERVICES FETY PUBLICSA TRANSPORTATION ADMINISTRATIVE&COMMUNITYSERVICES 68 City of Denton, Texas Proposed Annual Program of Services ESTIMATED AD VALOREM TAX COLLECTIONS & DISTRIBUTION 2012-13 City of Denton Overall Tax Collections Assessed Valuation for 2011$ 6,412,375,004 Gain or Loss in Value 304,336,364 Loss of Downtown TIF Value (10,248,781) Net Assessed Valuation for 2012$ 6,706,462,587 Tax Rate Per $100 Valuation x 0.68975 $ 46,257,826 Estimated Collections x 100.00% TOTAL GENERAL FUND AND DEBT SERVICE REVENUE$ 46,257,826 TIF Value$ 10,248,781 Tax Rate Per $100 Valuation x 0.68975 $ 70,691 Estimated Collections x 100.00% TOTAL TIF REVENUE$ 70,691 TOTAL TAX REVENUE$ 46,328,517 TAX RATE PER $100 2012-13 DISTRIBUTION2011-122012-13REVENUEPERCENT General Fund $ 0.47088$ 0.47088$ 31,579,39168.27% General Debt Service Fund 0.21887 0.21887 14,678,435 31.73% Sub-Total $ 0.68975$ 0.68975$ 46,257,826100.00% Downtown TIF Fund $ 0.68975$ 0.68975$ 70,691100.00% TOTAL $ 46,328,517 69 City of Denton, Texas Proposed Annual Program of Services GENERALDEBTSERVICEFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES 70 City of Denton, Texas Proposed Annual Program of Services ELECTRIC FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Operating Revenues$ 131,135,037$ 139,711,427$ 130,841,111$ 142,248,302 Non-Operating Revenues 662,023 2,316,241 486,817 492,999 TOTAL REVENUES 131,797,060 142,027,668 131,327,928 142,741,301 Use of Reserves - - 292,950 16,246,224 TOTAL RESOURCES$ 131,797,060$ 142,027,668$ 131,620,878$ 158,987,525 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED Fuel & Purchased Power$ 74,761,817$ 84,405,872$ 76,922,163$ 100,928,672 Operation & Maintenance 20,531,628 22,302,358 26,541,468 25,890,126 Return on Investment 4,279,610 4,245,968 4,235,989 4,303,400 Franchise Fee 6,121,943 6,065,668 6,051,412 6,147,714 Non-Operating Expenditures 16,625,217 23,371,237 17,869,846 21,717,613 TOTAL EXPENDITURES$ 122,320,215$ 140,391,103$ 131,620,878$ 158,987,525 PERSONNEL2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED TOTAL PERSONNEL 129.50 131.50 131.50 143.00 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects no base rate increase. The budget reflects The budget reflects no base rate increase. The budget reflects the addition of 2 FTEs for NERC (North American Electric the addition of 11.5 FTEs, including 6 FTEs for an enhanced Reliability Corporation) Compliance and analytical support.Capital Improvement Program (CIP) as discussed in the budget overview section of this document. The format of this budget is being used to provide financial inf publicly available from the other municipal utilities and invest 71 City of Denton, Texas Proposed Annual Program of Services WATER FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Interest Operating$ 53,986$ 144,894$ 61,000$ 233,000 Water Sales Residential 14,918,441 14,685,599 14,858,735 16,277,324 Water Sales Commercial 12,762,906 13,612,870 13,789,106 14,869,171 Water for Resale 1,617,352 638,723 676,525 677,760 Other Water 870,770 884,863 685,002 748,882 Public Works Fees & Permits 433,364 392,000 424,097 482,000 Engineering Fees & Permits 10,287 11,000 10,730 12,616 Engineering Charges 2,121,979 1,928,883 1,881,706 2,212,374 Public Works Charges 211,825 261,636 227,860 285,243 Cost of Service - General Fund 105,638 112,552 107,318 332,289 Cost of Service - Electric 2,165,760 2,423,823 2,353,682 2,512,886 Cost of Service - Wastewater 702,200 852,689 807,459 877,788 Cost of Service - Solid Waste 681,154 800,205 768,148 817,243 Other Transfers - - - 26,021 Impact Fee Revenues 3,300,000 1,900,000 1,900,000 2,600,000 TOTAL REVENUES$ 39,955,662$ 38,649,737$ 38,551,368$ 42,964,597 Use of Reserves - 90,693 - 903,333 TOTAL RESOURCES$ 39,955,662$ 38,740,430$ 38,551,368$ 43,867,930 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATE PROPOSED Water Administration$ 1,039,329$ 1,685,675$ 1,471,241$ 1,642,231 Water Production 5,185,230 6,001,290 5,528,167 6,678,873 Water Distribution 4,004,147 4,334,444 4,393,574 6,861,572 Water Metering 1,524,275 1,860,566 1,824,204 1,856,095 Water Engineering 1,882,856 1,939,883 1,892,436 2,224,990 Public Works Inspections 636,648 653,636 651,957 767,243 Water Laboratory 374,601 400,698 400,319 433,805 Utilities Administration 722,500 981,485 881,485 1,053,872 Customer Service 3,788,817 4,148,203 4,048,137 4,375,085 Miscellaneous 16,451,962 16,734,550 16,741,857 17,974,164 TOTAL EXPENDITURES$ 35,610,365$ 38,740,430$ 37,833,377$ 43,867,930 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED Water Administration 9.00 9.50 9.50 9.50 Water Production 31.00 31.00 31.00 33.00 Water Distribution 22.00 22.00 22.00 22.00 Water Metering 14.00 14.00 14.00 14.00 Water Engineering 21.50 21.50 21.50 21.50 Public Works Inspections 9.50 9.50 9.50 9.50 Water Laboratory 4.00 4.00 4.00 4.00 Utilities Administration 7.00 7.00 7.00 8.00 Customer Service 39.50 39.50 39.50 39.50 TOTAL PERSONNEL 157.50 158.00 158.00 161.00 72 City of Denton, Texas Proposed Annual Program of Services WATER FUND EXPENDITURES BY CLASSIFICATION 2012-13 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATE PROPOSED Purchased Power$ 1,148,199$ 1,435,800$ 1,270,000$ 1,504,000 Purchased Water 85,676 91,500 86,339 91,500 Personal Services 9,526,841 10,526,963 10,024,524 11,049,920 Materials & Supplies 1,427,142 1,646,106 1,473,400 1,694,929 Maintenance & Repair 729,862 1,214,507 1,177,754 1,243,446 Insurance 201,425 197,382 197,728 203,693 Return on Investment 1,006,720 1,043,772 1,050,328 1,140,060 Franchise Fee 1,438,172 1,480,717 1,490,083 1,618,168 Miscellaneous 73,329 94,435 91,488 99,548 Operations 1,682,567 2,518,593 2,493,970 2,624,276 Fixed Assets - 10,000 - 42,000 Debt Service 12,311,136 12,371,898 12,364,199 13,209,294 Cost of Service - General Fund 1,355,136 1,355,593 1,355,593 1,631,715 Cost of Service - Electric Fund 565,748 653,820 653,820 587,374 Cost of Service - Other - 43,379 40,716 52,863 Cost of Service - Wastewater 116,815 120,319 120,319 123,929 Cost of Service - Fleet Services 25,272 26,832 26,832 26,208 Cost of Service - Technology 668,887 778,407 778,407 844,154 Cost of Service- Safety & Training 85,273 87,184 87,184 88,965 Cost of Service - Materials Mgmt 70,648 72,767 72,767 167,601 Transfer to Capital Projects 3,091,517 2,970,456 2,977,926 5,824,287 TOTAL EXPENDITURES$ 35,610,365$ 38,740,430$ 37,833,377$ 43,867,930 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 A 9.5% rate increase for water customers is included in the budAn 8.0% rate increase for water customers is included in the The budget reflects a 0.5 FTE increase in the Water Administratibudget. The budget reflects the addition of 3 FTEs: 1 FTE for a division, and the decrease of 1 FTE in the Customer Service diviSustainability Coordinator in Utility Administration; 1 FTE for for a net decrease of 0.5 FTE. Senior Engineer in Water Production; and 1 FTE for an Operator I in Water Production. 73 City of Denton, Texas Proposed Annual Program of Services WASTEWATER FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Interest Operating$ 48,228$ 122,589$ 48,600$ 192,000 Wastewater Residential 7,699,649 8,908,366 8,391,299 9,311,742 Wastewater Commercial 8,221,608 9,041,594 9,469,922 10,546,220 Wastewater Effluent Irrigation 100,254 143,353 113,140 126,640 Wastewater Wholesale 466,562 482,961 516,173 522,519 Other Wastewater 1,148,607 1,042,235 1,038,000 1,282,890 Drainage Fees 4,148,300 4,134,357 4,189,783 4,275,310 Transfer in - General Fund - - - 269,962 Transfer In - Other 222,905 229,592 229,592 149,179 Impact Fee Revenues 1,400,000 1,000,000 1,000,000 1,100,000 TOTAL REVENUES$ 23,456,113$ 25,105,047$ 24,996,509$ 27,776,462 Use of Reserves - - - 475,945 TOTAL RESOURCES$ 23,456,113$ 25,105,047$ 24,996,509$ 28,252,407 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATE PROPOSED Wastewater Administration$ 965,937$ 1,210,001$ 1,175,020$ 1,309,405 Water Reclamation 3,410,620 3,839,274 3,751,055 4,146,261 Wastewater Collection 3,485,402 4,324,789 4,359,899 5,960,366 Beneficial Reuse 986,846 1,214,399 1,167,794 1,398,341 Wastewater Laboratory 455,354 536,020 519,786 534,601 Industrial Pretreatment 521,830 597,786 528,350 753,424 Drainage 2,204,853 2,129,640 2,059,947 2,536,355 Watershed Protection 570,752 573,356 574,001 641,116 Drainage Miscellaneous 1,585,790 1,580,915 1,556,867 1,433,616 Miscellaneous 8,371,988 8,795,388 8,669,389 9,538,922 TOTAL EXPENDITURES$ 22,559,372$ 24,801,568$ 24,362,108$ 28,252,407 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED Wastewater Administration 8.50 10.00 10.00 10.00 Water Reclamation 21.00 21.00 21.00 22.00 Wastewater Collection 22.00 24.00 24.00 24.00 Beneficial Reuse 6.75 6.75 6.75 6.75 Wastewater Laboratory 4.00 4.00 4.00 4.00 Industrial Pretreatment 5.50 6.00 6.00 7.50 Drainage 16.00 16.00 16.00 16.00 Watershed Protection 4.62 4.62 4.62 5.00 TOTAL PERSONNEL 88.37 92.37 92.37 95.25 74 City of Denton, Texas Proposed Annual Program of Services WASTEWATER FUND EXPENDITURES BY CLASSIFICATION 2012-13 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATE PROPOSED Purchased Power$ 770,382$ 820,000$ 770,000$ 821,000 Personal Services 5,514,164 6,526,499 6,261,882 6,910,361 Materials & Supplies 574,226 856,286 820,419 910,128 Maintenance & Repair 848,277 1,266,124 1,251,768 1,287,347 Insurance 113,173 102,253 102,253 135,833 Miscellaneous 37,427 43,944 32,387 44,381 Operations 1,836,519 2,040,350 2,112,034 2,315,667 Return on Investment 600,331 686,648 683,499 762,650 Franchise Fee 857,616 980,925 976,427 1,089,501 Debt Service 6,572,479 5,756,369 6,553,689 6,751,660 General Obligation Debt Service - 920,802 - - Cost of Service - 731,717 735,093 735,093 969,706 General Fund Cost of Service - 34,632 34,320 34,320 34,632 Fleet Services Cost of Service - 224,240 257,818 257,818 294,863 Technology Cost of Service - 57,259 58,976 58,976 161,012 Materials Mgmt Transfer to Electric Fund 254,789 267,556 267,556 276,335 Transfer to Street Fund - 15,016 41,328 95,975 Cost of Service - 232,269 316,651 284,389 275,742 Utilities Admin Cost of Service- 469,931 536,038 523,070 566,586 Customer Service Cost of Service- 85,273 87,184 87,184 90,355 Safety & Training Cost of Service- Water - - - 35,460 Fixed Assets 47,491 71,500 - 10,000 Transfer for Capital Projects 2,697,177 2,421,216 2,508,016 4,413,213 TOTAL EXPENDITURES$ 22,559,372$ 24,801,568$ 24,362,108$ 28,252,407 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The Wastewater budget reflects the addition of 3.5 FTEs to The Wastewater budget reflects a 9.0% increase in rates. The address regulatory compliance. An additional 0.5 FTE is budget reflects the addition of 2.88 FTEs in the Wastewater proposed for a one half of a Water/ Wastewater Coordinator budget: 1 FTE for a WW Utility Electrician II in Water position. The Wastewater budget reflects an 11.0% increase in Reclamation; 0.5 FTE for an Environmental Monitoring Tech in rates.Industrial Pretreatment; 1 FTE for a Transportation Permit Specialist in Industrial Pretreatment; and 0.38 FTE for a Watershed Protection Intern in Watershed Protection. 75 City of Denton, Texas Proposed Annual Program of Services SOLID WASTE FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED $ 6,530,099 $ 7,037,509 $ 6,952,366 $ 8,749,295 Refuse Fees - Residential 9,344,971 9,700,246 9,705,849 11,395,798 Refuse Fees - Commercial 1,950,411 3,250,137 2,909,289 3,106,292 Landfill Fees 2,721,246 3,075,411 3,163,167 1,214,705 Recycling 656,278 10,000 110,000 681,499 Other Revenues $ 21,203,005 $ 23,073,303 $ 22,840,671 $ 25,147,589 TOTAL REVENUES - - - - Use of Reserves $ 21,203,005 $ 23,073,303 $ 22,840,671 $ 25,147,589 TOTAL RESOURCES 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATE PROPOSED $ 612,149 $ 670,096 $ 629,381 $ 946,039 Solid Waste Administration 5,104,860 5,982,875 5,970,592 7,695,415 Residential Collection 6,085,877 6,438,629 6,415,340 8,212,309 Commercial Collection 5,773,344 6,218,290 6,205,417 6,422,162 Solid Waste Landfill 2,425,416 3,237,421 3,237,423 1,271,317 Solid Waste Recycling 186,652 - - 226,280 Construction 345,343 357,025 356,846 351,167 Keep Denton Beautiful (KDB) 290,367 - - - Miscellaneous $ 20,824,008 $ 22,904,336 $ 22,814,999 $ 25,124,689 TOTAL EXPENDITURES PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED 4.00 4.00 4.00 4.00 Solid Waste Administration 31.50 31.50 31.50 40.00 Residential Collection 23.50 23.50 23.50 28.50 Commercial Collection 25.50 26.50 26.50 22.50 Solid Waste Landfill - - - 4.50 Construction 11.00 17.00 17.00 8.00 Solid Waste Recycling 3.00 3.00 3.00 3.00 Keep Denton Beautiful (KDB) 98.50 105.50 105.50 110.50 TOTAL PERSONNEL 76 City of Denton, Texas Proposed Annual Program of Services SOLID WASTE FUND EXPENDITURES BY CLASSIFICATION 2012-13 2010-112011-122011-122012-13 EXPENDITURE ACTUALBUDGETESTIMATE PROPOSED $ 6,914,062 $ 7,315,794 $ 7,283,402 $ 8,398,223 Personal Services 255,614 272,150 242,090 292,644 Materials & Supplies 135,348 273,527 270,177 455,675 Maintenance & Repair 125,382 146,658 146,659 168,962 Insurance 1,028,873 1,124,323 1,144,698 1,241,561 Franchise Fee 46,871 51,265 58,082 60,322 Miscellaneous 5,627,675 6,528,230 6,477,504 6,242,914 Operations 3,645,631 4,529,003 4,529,003 5,378,055 Debt Service 774,657 765,180 765,180 888,373 Cost of Service - General Fund 394,618 375,950 375,950 325,950 Landfill Closure 192,268 241,362 241,362 281,642 Cost of Service - Technology Services 40,560 40,872 40,872 45,045 Cost of Service - Fleet Services 81,213 84,344 84,344 86,201 Cost of Service - Safety and Training 970 2,375 2,375 691 Cost of Service - Electric 50,042 50,693 50,693 71,188 Cost of Service -Materials Mgmt 115,140 160,677 160,677 146,855 Cost of Service - Utility Admin 566,014 637,733 637,731 670,388 Cost of Service - Customer Service 115,275 304,200 304,200 370,000 Fixed Assets 713,795 - - - Capital Projects $ 20,824,008 $ 22,904,336 $ 22,814,999 $ 25,124,689 TOTAL EXPENDITURES MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects the addition of 6 FTEs for the curbside The budget reflects the addition of 5 FTEs and the re- Recycling program, and 1 FTE for Landfill operations.establishment of a Construction and Demolition Materials Recovery operation: 2 FTEs for Residential Curbside Recycling, 1 FTE for a Recycling Coordinator, and 1 FTE for the Household Chemical Collection program. Additionally, 1 Temporary FTE for Residential Yard Waste collection, and the Construction and Demolition Materials Recovery processing program are proposed. 77 City of Denton, Texas Proposed Annual Program of Services AIRPORT FUND RESOURCE AND EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Airport Ground Leases$ 320,552$ 375,000$ 341,329$ 561,802 FBO Commissions 260,361 245,000 262,213 350,000 Airport Gas Royalties 2,561,321 1,500,000 1,220,044 1,125,000 Airport Leases 15,152 - - - Miscellaneous 46,040 15,000 34,958 40,000 Interest Income 40,225 35,000 27,000 25,000 Transfers In 8,679,643 - - - TOTAL REVENUES$ 11,923,294$ 2,170,000$ 1,885,544$ 2,101,802 Use of Reserves - - - 391,123 TOTAL RESOURCES$ 11,923,294$ 2,170,000$ 1,885,544$ 2,492,925 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED Personal Services$ 340,501$ 359,178$ 384,302$ 503,380 Materials & Supplies 5,671 8,900 7,272 46,725 Repair & Maintenance 63,463 79,497 70,097 78,997 Insurance 18,321 17,874 17,874 18,563 Miscellaneous 2,011 1,500 1,300 1,500 Operations 225,795 260,835 207,665 219,388 Transfers 691,857 489,681 489,681 1,066,656 Debt Service Transfer 224,815 219,455 211,496 226,648 Cost of Service Transfer - 178,124 178,124 178,124 294,997 General Fund Franchise Fees & Return On Investment 67,935 54,852 54,852 36,071 TOTAL EXPENDITURES$ 1,818,493$ 1,669,896$ 1,622,663$ 2,492,925 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED Total Personnel 5.00 5.00 5.50 6.50 TOTAL PERSONNEL 5.00 5.00 5.50 6.50 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects $250,000 in funds for year one (1) of a fivThe budget includes $250,000 in funds for year two (2) of a five year program to repair and/or resurface approximately 5.5 miles (5) year program to repair and/or resurface approximately 5.5 Airport roads; $50,000 is for Grant matching to update the 2003miles of Airport roads; $50,000 is for Grant matching to update Master Plan; $60,056 for the purchase of a utility tractor; and the 2003 Master Plan; $76,211 for an additional 1 FTE for a $50,000 for the creation of an airport marketing program.Property Coordinator position; and $750,000 for capital improvement programming. The budget includes an additional $37,625 for items related to the Aircraft Rescue and Firefightin (ARFF) vehicle added in FY11-12. 78 City of Denton, Texas Proposed Annual Program of Services TECHNOLOGY SERVICES FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Transfer - Communication Services $ 521,545$ 720,841$ 720,841$ 495,662 Cost of Service - General Fund 3,365,064 4,096,876 4,096,876 4,636,170 Cost of Service - Electric Fund 720,983 875,533 875,533 1,289,740 Cost of Service - Water Fund 668,887 778,407 778,407 844,155 Cost of Service - Wastewater Fund 224,240 257,818 257,818 294,863 Cost of Service - Solid Waste Fund 227,504 222,899 222,899 281,642 Cost of Service - Fleet Services Fund 67,882 71,379 71,379 89,779 Cost of Service - Materials Management 55,032 65,950 65,950 70,832 Cost of Service - Risk Retention 21,406 25,189 25,189 27,787 Cost of Service - Reprographics 14,776 17,161 89,284 83,716 Cost of Service - Street Improvement - 65,328 65,328 80,034 Cost of Service - Aquatic - 62,508 62,508 64,495 Cost of Service - Other - 37,809 37,809 47,495 Transfer - Municipal Court Tech Fund 94,699 125,000 125,000 100,000 Sale of Documents 335,641 349,980 275,359 290,000 Copy Sales 95,245 94,775 94,775 97,800 Miscellaneous 9,727 - - - Interest Income 4,816 - - - TOTAL REVENUES$ 6,427,447$ 7,867,453$ 7,864,955$ 8,794,170 Use of Reserves 192,286 158,049 158,577 178,803 TOTAL RESOURCES$ 6,619,733$ 8,025,502$ 8,023,532$ 8,972,973 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED Administration$ 1,734,884$ 2,204,037$ 2,204,037$ 2,171,960 Telecommunications 1,027,935 1,162,820 1,162,820 1,172,732 Geographic Information Systems 303,437 422,963 422,963 450,918 Applications Development 1,701,091 2,025,357 2,025,357 2,285,514 User Support 806,345 1,039,967 1,039,967 1,368,353 Public Safety/Projects 609,638 522,657 522,657 712,914 Regulatory Compliance - 203,474 203,474 356,841 Reprographics 436,403 444,227 442,257 453,741 TOTAL EXPENDITURES$ 6,619,733$ 8,025,502$ 8,023,532$ 8,972,973 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED Administration 5.00 5.00 5.00 5.00 Telecommunications 3.00 3.00 3.00 3.00 Geographic Information Systems 2.00 2.00 2.00 2.00 Applications Development 8.00 8.00 8.00 8.00 User Support 6.00 6.00 6.00 8.00 Regulatory Compliance1.001.001.001.00 Reprographics 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 27.0027.0027.0029.00 79 City of Denton, Texas Proposed Annual Program of Services TECHNOLOGY SERVICES FUND EXPENDITURES BY CLASSIFICATION 2012-13 2010-112011-122011-122012-13 EXPENDITURE ACTUALBUDGETESTIMATEPROPOSED Personal Services$ 2,411,283$ 2,688,014$ 2,688,014$ 2,931,736 Materials & Supplies 345,578 377,776 377,776 386,219 Maintenance & Repair 1,708,847 2,241,307 2,241,307 2,604,342 Insurance 18,201 21,268 21,268 24,463 Operations 894,967 1,154,156 1,152,186 1,370,878 Debt Payment 677,114 582,159 582,159 246,369 Transfers 357,637 279,607 279,607 796,844 Fixed Assets 206,106 681,215 681,215 612,122 TOTAL EXPENDITURES$ 6,619,733$ 8,025,502$ 8,023,532$ 8,972,973 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects the addition of a 1 FTE, and a division forThe budget reflects the addition of 2 FTEs, in the User Support regulatory compliance.Division, for enhanced support functions to public safety departments. 80 City of Denton, Texas Proposed Annual Program of Services MATERIALS MANAGEMENT FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Sale of Scrap Material$ 2,752$ 3,250$ 200$ - Postage Fees 55,198 54,570 50,000 45,000 Warehouse Sales 8,044,081 5,123,958 4,536,354 5,627,081 Miscellaneous Income 45,495 44,200 39,745 40,760 Cost of Service - General Fund 194,230 264,983 264,983 448,590 Cost of Service - Electric Fund 108,573 111,830 111,830 262,400 Cost of Service - Water Fund 70,648 72,767 72,767 167,601 Cost of Service - Wastewater Fund 57,259 58,977 58,977 161,012 Cost of Service - Solid Waste Fund 50,042 51,543 51,543 71,185 Cost of Service - Other Funds 120,884 119,300 119,300 180,063 Auction Proceeds 40,506 35,300 38,000 40,500 TOTAL REVENUES$ 8,789,668$ 5,940,678$ 5,343,699$ 7,044,192 Use of Reserves 155,259 162,076 56,316 394,674 TOTAL RESOURCES$ 8,944,927$ 6,102,754$ 5,400,015$ 7,438,866 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATE PROPOSED Personal Services$ 843,994$ 940,054$ 909,396$ 1,122,540 Materials & Supplies 25,175 21,063 20,314 28,353 Inventory 7,798,545 4,895,140 4,232,784 5,334,970 Maintenance & Repair 10,041 16,652 16,652 9,652 Insurance 17,987 18,106 18,106 17,357 Miscellaneous 986 1,000 1,000 1,000 Operations 44,205 94,225 85,249 81,230 Debt Service 48,353 48,692 48,692 45,287 Transfers 126,391 67,822 67,822 798,477 Fixed Assets 29,250 - - - TOTAL EXPENDITURES$ 8,944,927$ 6,102,754$ 5,400,015$ 7,438,866 PERSONNEL2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED Purchasing 8.00 7.00 7.00 8.00 Warehouse 5.50 5.00 5.00 5.00 TOTAL PERSONNEL 13.50 12.00 12.00 13.00 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects a reduction of 1.5 FTEs; 1 FTE in the The budget reflects the addition of 1 FTE for a Senior Buyer to Purchasing division and 0.5 FTE in the Warehouse.assist with the enhanced DME capital program , and additional funding for a temporary position. 81 City of Denton, Texas Proposed Annual Program of Services FLEET MANAGEMENT FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Fuel Sales $ 4,414,183$ 6,596,950$ 5,023,713$ 7,167,150 Parts Vehicle Maintenance 4,337,179 4,737,565 5,338,255 5,309,560 DCTA Fleet Maintenance - 1,173,708 - - Federal Transit Administration Grant - 450,000 - - Miscellaneous 86,404 1,300 72,789 91,300 Interest Income 743 - 1,394 1,300 Fleet Rental 7,156 25,168 4,690 7,605 Fleet Admin Transfers 281,112 292,656 292,344 291,060 TOTAL REVENUES$ 9,126,777$ 13,277,347$ 10,733,185$ 12,867,975 Use of Reserves 12,269 - - - TOTAL RESOURCES$ 9,139,046$ 13,277,347$ 10,733,185$ 12,867,975 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATE PROPOSED Personal Services$ 1,590,487$ 2,295,344$ 1,603,014$ 1,742,128 Materials & Supplies 89,231 204,047 138,453 155,220 Inventory (Fuel only) 3,846,575 5,010,250 4,646,531 5,500,150 Maintenance & Repair 11,949 545,000 55,000 96,000 Insurance 142,150 83,652 83,652 83,652 Miscellaneous - 1,250,000 - 1,250,000 Operations 2,910,932 3,337,112 3,679,653 3,184,210 Interest Expense - - - - Debt Service 265,376 258,558 258,558 258,185 Transfers 282,346 145,971 145,971 550,316 Fixed Assets - 140,000 70,000 - TOTAL EXPENDITURES$ 9,139,046$ 13,269,934$ 10,680,832$ 12,819,861 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED TOTAL PERSONNEL 21.00 31.00 22.00 22.00 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects the addition of 1 FTE, Heavy Equipment DCTA and the City were unable to successfully negotiate a fleet Technician. maintenance agreement due to a variety of factors. As a result, FY 2012-13 Budget excludes 9 FTEs and associated funding which In addition, the budget reflects an agreement with DCTA for flee was included in the FY 2011-12 Budget for this purpose. maintenance. The DCTA maintenance agreement will result in an additional 9 FTEs to the Fleet fund. 82 City of Denton, Texas Proposed Annual Program of Services RISKRETENTIONFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES PERSONNEL201011201112201112201213 FullTimeEquivalents(FTE)ACTUALBUDGETESTIMATEPROPOSED TOTALPERSONNEL MAJORBUDGETITEMS FY201112FY201213 83 City of Denton, Texas Proposed Annual Program of Services HEALTHINSURANCEFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES MAJORBUDGETITEMS FY201112FY201213 84 City of Denton, Texas Proposed Annual Program of Services STREET IMPROVEMENT FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Street Cut Reimbursements$ -$ 315,180$ 315,180$ 321,484 Bond Sale Savings - 156,775 194,382 265,251 Franchise - Atmos Gas - 492,814 492,814 553,470 Franchise - Charter Communications - 159,898 180,135 189,148 Franchise - CoServ Electric - 82,895 111,016 106,396 Franchise - TXU Electric - 30,949 30,949 34,758 Franchise - CoServ Gas - 61,414 68,554 72,349 Franchise - Verizon FIOS - - 226,400 496,513 Franchise - Miscellaneous Cable - 367,827 367,827 23,643 ROW - DISD FIBER - 11,579 11,579 12,749 Franchise - Verizon Telecommunications - 300,799 186,391 264,250 Franchise - Telecommunications - 86,527 116,023 111,124 Franchise - DMU Electric - 2,553,932 2,539,676 2,850,065 Franchise - DMU Water - 623,451 632,817 750,178 Franchise - DMU Wastewater - 413,016 408,518 505,090 Franchise - Solid Waste - 473,392 493,768 575,584 Franchise - Airport - 14,745 14,745 16,722 Transfer from General Fund - 921,779 921,779 - Interest Income - - 10,000 10,000 TOTAL REVENUES$ -$ 7,066,972$ 7,322,553$ 7,158,774 Use of Reserves - - - - TOTAL RESOURCES$ -$ 7,066,972$ 7,322,553$ 7,158,774 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED Personal Services$ -$ 1,825,754$ 1,886,761$ 2,141,141 Materials & Supplies - 65,550 63,350 67,706 Maintenance & Repairs - 3,613,230 3,561,522 4,257,024 Insurance - 37,163 37,163 47,751 Miscellaneous - 4,550 5,500 6,000 Operations - 516,770 507,122 557,647 Transfers - 82,176 82,176 81,505 TOTAL EXPENDITURES$ -$ 6,145,193$ 6,143,594$ 7,158,774 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED TOTAL PERSONNEL - 27.00 27.00 30.00 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects the creation of a special revenue fund to acThe budget reflects the addition of 3 FTEs for a new maintenance for street operations. A one-time transfer from the General Fundcrew to perform additional street repairs. $921,779 is included to establish a beginning fund balance and represents 15% of budgeted expenditures for FY 2011-12. 85 City of Denton, Texas Proposed Annual Program of Services RECREATION FUND RESOURCE AND EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Special Projects$ 5,772$ 2,535$ 2,950$ 3,096 Marketing 19,984 25,247 25,247 28,166 Civic Center 23,084 23,384 23,384 24,071 Denia Rec Center 120,026 124,679 124,679 137,462 North Lakes Rec Center 255,714 269,932 263,000 269,767 Senior Center 101,529 81,962 101,529 99,017 Youth and Teen Services 409,072 358,043 358,043 383,303 Goldfield Tennis Center 126,923 162,000 162,000 177,646 Civic Center Pool 33,581 46,968 39,600 41,078 Martin Luther King Jr. Rec Center 36,637 81,298 81,298 166,412 Golf - - - 143,175 Athletics 252,780 266,613 266,613 279,438 Miscellaneous Income 900 - - - Interest Income 4,232 15,000 15,000 10,000 TOTAL REVENUES$ 1,390,234$ 1,457,661$ 1,463,343$ 1,762,631 Use of Reserves 36,447 147,690 67,153 187,717 TOTAL RESOURCES $ 1,426,681$ 1,605,351$ 1,530,496$ 1,950,348 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED Personal Services$ 381,414$ 577,568$ 505,821$ 650,808 Materials & Supplies 428,343 440,775 438,783 559,707 Maintenance & Repair 13,646 13,074 13,074 103,454 Insurance 16,091 19,155 19,155 20,434 Operations 339,732 393,342 392,226 504,114 Transfer - General Fund 152,168 156,733 156,733 80,668 Transfer - Capital Projects 35,000 - - - Transfer - Materials Mgmt 4,567 4,704 4,704 31,163 Fixed Assets 55,720 - - - TOTAL EXPENDITURES$ 1,426,681$ 1,605,351$ 1,530,496$ 1,950,348 PERSONNEL2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATEPROPOSED 24.27 24.27 24.27 24.27 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget includes funding for replacement kayaks used in the The budget includes funding for the purchase of a new tennis outdoor programs, a replacement TV for Martin Luther King ball machine, carnival games for department special events, ping recreation center, sound system for Denia recreation center, andpong table, kayaks, new basketball rims for the recreation the addition of benefits for one full time employee. centers, and improvements to the Golf driving range center. 86 City of Denton, Texas Proposed Annual Program of Services TOURIST & CONVENTION FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Hotel Occupancy Tax$ 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740 TOTAL REVENUES$ 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740 Use of Reserves - - - - TOTAL RESOURCES $ 1,513,468$ 1,461,103$ 1,508,740$ 1,508,740 2010-112011-122011-122012-13 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED Convention & Visitor Bureau $ 650,076$ 650,080$ 650,080$ 733,100 North Texas State Fair Association 73,610 73,620 73,620 73,620 Greater Denton Arts Council 117,776 117,780 117,780 117,780 Denton Civic Center 16,991 7,500 7,500 7,500 Denton Festival Foundation 82,811 82,820 82,820 82,820 Denton Black Chamber of Commerce 16,572 16,580 16,580 16,580 Denton Holiday Festival Association 7,638 7,640 7,640 7,640 Denton Community Theatre 23,003 23,010 23,010 23,010 Denton Air Fair 10,234 10,240 10,240 10,240 Denton Main Street Association 23,003 23,010 23,010 23,010 Denton County Museums 54,395 90,840 90,840 90,840 Denton Firefighter Museum 20,227 20,790 20,790 20,690 Denton County Historical Commission - 17,730 17,730 17,730 Cinco de Mayo Committee 8,392 8,400 8,400 8,000 Juneteenth Committee 9,700 12,430 12,430 12,430 Tejas Storytelling Association 50,607 50,610 50,610 50,610 Water Works Park 10,978 11,040 11,040 11,040 Denton Dog Days 14,586 14,590 14,590 14,590 Denton Public Art Committee 34,260 35,070 35,070 36,210 Susan G. Komen - - - 10,000 Denton Square Maintenance 9,695 11,050 11,050 11,050 Square Lighting Maintenance 5,250 5,530 5,530 5,250 Contingency 445 15,000 15,000 15,000 Convention Center Contingency - - - 100,000 Music Theater of Denton 5,000 5,000 5,000 5,000 Texas Filmmakers 5,000 5,000 5,000 5,000 TOTAL EXPENDITURES$ 1,250,249$ 1,315,360$ 1,315,360$ 1,508,740 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects no major changes.The budget includes $100,000 as a contingency for unknown but anticipated expenses related to the planned Convention Center. 87 City of Denton, Texas Proposed Annual Program of Services POLICECONFISCATIONFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES MAJORBUDGETITEMS FY201112FY201213 88 City of Denton, Texas Proposed Annual Program of Services TRAFFIC SAFETY FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Red Light Camera Fees$ 616,416$ 385,000$ 895,316$ 913,200 TOTAL REVENUES 616,416 385,000 895,316 913,200 Use of Reserves 51,811 - - - TOTAL RESOURCES$ 668,227$ 385,000$ 895,316$ 913,200 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED Personal Services$ 1,901$ 2,000$ 3,850$ 3,850 Operations 49,910 25,000 25,000 25,000 Red Light Camera Contract 616,416 350,000 630,134 525,960 Payment to State of Texas - - 78,900 191,695 Contingency - - 100,000 150,000 TOTAL EXPENDITURES$ 668,227$ 377,000$ 837,884$ 896,505 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget includes $25,000 for solar school flashers. The The budget includes $25,000 for solar school flashers. The estimate reflects higher than anticipated revenues, and budget reflects 50% revenue payments to the State of Texas. corresponding higher than expected contract expenditures and Appropriations have also been included in the budget to provide payments to the State of Texas. The City Council will consider aa contingency for items such as unanticipated payments to the formal budget amendment to recognize these changes in State of Texas or additional red light camera installations. August 2012. 89 City of Denton, Texas Proposed Annual Program of Services NON-AIRPORT GAS WELL FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED )­³¤±¤²³ )­¢®¬¤a þ—”–a ’þ”a ’þ”a ‘þ˜“˜ -¨²¢¤«« ­¤®´² þ”    TOTAL REVENUES a ‘’þ’”—a ’þ”a ’þ”a ‘þ˜“˜ 5²¤ ®¥ 2¤²¤±µ¤² ’•˜þ”“‘ þ”—•þ” þ”˜•þ” ’–þ” TOTAL RESOURCES a ’˜‘þ˜a þ•þa þ•þa “þ 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED 4± ­²¥¤± ³® # ¯¨³ « 0±®©¤¢³²a ’˜‘þ˜a þ•þa þ•þa “þ TOTAL EXPENDITURES a ’˜‘þ˜a þ•þa þ•þa “þ MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 4§¤ ¡´£¦¤³ ¨­¢«´£¤£ aþþ ¥®± ¯±®¯¤±³¸  ¢°´¨²¨³¨®­þ  ­£ 4§¤ ¡´£¦¤³ ¨­¢«´£¤² a“þ ¥®± ¯®³¤­³¨ « ¤·¯¤­²¤² ±¤« ³¤£ ³®   a•þ ¥®± ³§¤ #®¬¯±¤§¤­²¨µ¤ 0« ­ ´¯£ ³¤¯« ­­¤£ ¯±®¯¤±³¸  ¢°´¨²¨³¨®­ 90 City of Denton, Texas Proposed Annual Program of Services PARKSGASWELLFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES MAJORBUDGETITEMS FY201112FY201213 91 City of Denton, Texas Proposed Annual Program of Services TREE MITIGATION FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED , ­£²¢ ¯¨­¦ &¤¤a –þ–—a “”þa ’þa ‘þ )­³¤±¤²³ )­¢®¬¤ “þ•’ ”þ” ”þ” ”þ” TOTAL RESOURCES a ‘þ’—“a ”þ”a ’”þ”a ‘”þ” 5²¤ ®¥ 2¤²¤±µ¤²     TOTAL RESOURCES a ‘þ’—“a ”þ”a ’”þ”a ‘”þ” 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED /¯¤± ³¨®­²a ‘þ—˜•a ”þa ”þ‘——a ”þ TOTAL EXPENDITURES a ‘þ—˜•a ”þa ”þ‘——a ”þ MAJOR BUDGET ITEMS FY 201-12FY 2012-13 4§¤ ¡´£¦¤³ ¨­¢«´£¤£ a”þ ¥®± ¢®­³¨­¦¤­¢¸ ¯´±¯®²¤²4§¤ ¡´£¦¤³ ¨­¢«´£¤² a”þ ¥®± ¯®³¤­³¨ « ¤·¯¤­²¤²  ²²®¢¨ ³¤£ ¶¨³§ ³§¤ ³±¤¤ ¬¨³¨¦ ³¨®­ ¯±®¦± ¬ 92 City of Denton, Texas Proposed Annual Program of Services PUBLIC EDUCATION GOVERNMENT (PEG) FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Subscriber Fees$ 272,749$ 285,000$ 285,000$ 288,000 Charter Grant 2,000 - - - TOTAL REVENUES$ 274,749$ 285,000$ 285,000$ 288,000 Use of Reserves - - - - TOTAL RESOURCES$ 274,749$ 285,000$ 285,000$ 288,000 2010-112011-122011-122012-13 ESTIMATE EXPENDITURES ACTUALBUDGETPROPOSED (1) Personal Services $ 39,514$ -$ -$ - Materials and Supplies 1,911 2,500 2,500 - Maintenance & Repair 75,775 147,325 147,325 113,500 Miscellaneous 470 - - - Operations 11,841 38,927 38,927 40,927 Transfer 8,195 84,175 84,175 - Fixed Assets 49,917 - - - TOTAL EXPENDITURES$ 187,623$ 272,927$ 272,927$ 154,427 PERSONNEL 2010-112011-122011-122012-13 Full Time Equivalents (FTE)ACTUALBUDGETESTIMATE PROPOSED TOTAL PERSONNEL 1.50 - - - (1) Personal services are funded from Charter Grant monies. MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget includes $50,000 for contributions to 4 PEG channels The budget reflects a one-time transfer of $11,175 to reimburse which include: UNT, TWU, Denton ISD, and Public Access. the General Fund for prior year expenses related to the Additionally, the budget reflects a reduction in transfers relat extension of Grande fiber to the Robson Ranch Development. to the Charter Grant monies and a reimbursement of the Grande fiber expense. The budget reflects the transfer of 1.5 FTE's to the General Fund and the transfer of $73,000 of remaining Charter Grant monies which are designated to pay for the salaries of these positions. The budget included $50,000 for contributions to 4 PEG channels which include: UNT, TWU, Denton ISD, and Public Access. 93 City of Denton, Texas Proposed Annual Program of Services MCKENNA TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATE PROPOSED Interest Income$ 2,973$ 2,820$ 3,000$ 3,000 TOTAL REVENUES$ 2,973$ 2,820$ 3,000$ 3,000 Use of Reserves - 43,858 31,275 7,000 TOTAL RESOURCES$ 2,973$ 46,678$ 34,275$ 10,000 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATE PROPOSED Operations$ -$ 46,678$ 34,275$ 10,000 TOTAL EXPENDITURES$ -$ 46,678$ 34,275$ 10,000 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget included $34,275 for the pavilion at McKenna Park. The budget includes $10,000 for eligible expenses associated An additional $12,403 is budgeted for contingency purposes.with the McKenna Trust. 94 City of Denton, Texas Proposed Annual Program of Services PARKLANDDEDICATIONTRUSTFUND RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES MAJORBUDGETITEMS FY201112FY201213 95 City of Denton, Texas Proposed Annual Program of Services PARK DEVELOPMENT TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Development Fees$ 231,110$ 146,000$ 100,600$ 101,000 Interest Income 20,437 22,000 20,350 20,000 TOTAL REVENUES$ 251,547$ 168,000$ 120,950$ 121,000 Use of Reserves 216,124 47,000 215,000 - TOTAL RESOURCES$ 467,671$ 215,000$ 335,950$ 121,000 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGET ESTIMATEPROPOSED Fixed Assets$ 467,671$ 215,000$ 215,000$ 100,000 TOTAL EXPENDITURES$ 467,671$ 215,000$ 215,000$ 100,000 MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget included funding for development at Owsley Park, The budget includes funding for improvements to existing McKamy-Evers Park, and North Pointe Park.neighborhood parks. 96 City of Denton, Texas Proposed Annual Program of Services DOWNTOWN TAX INCREMENT FINANCING FUND RESOURCE & EXPENDITURE SUMMARY 2012-13 2010-112011-122011-122012-13 RESOURCESACTUALBUDGETESTIMATEPROPOSED Ad Valorem$ -$ 15,871$ 15,871$ 70,691 TOTAL REVENUES$ -$ 15,871$ 15,871$ 70,691 2010-112011-122011-122012-13 EXPENDITURES ACTUALBUDGETESTIMATEPROPOSED $ -$ -$ -$ - TOTAL EXPENDITURES$ -$ -$ -$ - MAJOR BUDGET ITEMS FY 2011-12FY 2012-13 The budget reflects the creation of this new fund in The 2010 base value of the TIF is $79,356,854 and the 2012 accordance with Ordinance No. 2010-316 adopted on value is $89,605,635, which reflects a $10,248,781 or 12.9% December 7, 2010. The 2010 base value of the TIF is increase compared to the base year. $79,356,854 and the 2011 value is $81,657,808, which reflects a $2,300,954 or 2.9% increase compared to the base year. 97 City of Denton, Texas Proposed Annual Program of Services MISCELLANEOUSSPECIALREVENUEFUNDS RESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALREVENUES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALEXPENDITURES MAJORBUDGETITEMS FY201112FY201213 98 City of Denton, Texas Proposed Annual Program of Services GRANTS BUDGET EXPENDITURE SUMMARY 2012-13 DESCRIPTION Thegrantsbudgetisasummaryoflocal,stateandfederalgrantsawardedtotheCityofDenton.Grantsareawardedtosupport programs in the City and are not funded with City resources. UNSPENT GRANTEXPIRATIONGRANT GRANT NAME YEARDATEAMOUNTTYPEAMOUNT Community Development Block Grant2007-08- 897,709 Federal 158,356 Community Development Block Grant2008-09- 875,933 Federal 108,631 Community Development Block Grant2009-10- 896,380 Federal 115,014 Community Development Block Grant2010-11- 975,447 Federal 141,008 Community Development Block Grant2011-12- 822,975 Federal 475,129 Community Development Block Grant2012-13- 847,464 Federal 827,464 Sub-Total CDBG$ 5,315,908$ 1,825,602 HOME Investment Partnership Grant2004-05- 672,160 Federal 5,006 HOME Investment Partnership Grant2005-06- 579,461 Federal 109,220 HOME Investment Partnership Grant2007-08- 542,079 Federal 91,639 HOME Investment Partnership Grant2008-09- 524,560 Federal 114,676 HOME Investment Partnership Grant2010-11- 578,028 Federal 243,600 HOME Investment Partnership Grant2011-12- 510,255 Federal 484,721 HOME Investment Partnership Grant2012-13- 327,218 Federal 317,218 Sub-Total HOME$ 3,733,761$ 1,366,080 Emergency Solutions Grant2012-13$ 472,140Federal$ 472,140 Total Community Development$ 9,521,809$ 3,663,822 Public Safety Traning Facility2009-1012/25/2013 350,738 Federal 350,738 2009 Congressional Setaside2009-1012/31/2013 500,000 Federal 500,000 2010 Congressional Setaside2010-119/30/2013 1,000,000 Federal 1,000,000 2011 UASI -LETPA2012-138/31/2013 253,000 Federal 253,000 Emergency Management Performance Grant2012-139/30/2013 68,844 Federal 68,844 Total Public Safety$ 2,172,582$ 2,172,582 CWA 319 Grant2009-108/31/2013 405,291 Federal 247,672 Texas Historical Commission Grant2011-128/30/2013 21,934 Federal 21,934 Summer Food Grant2012-139/30/2013 140,000 Federal 140,000 Airport RAMP Grant2012-138/31/2013 50,000 State 50,000 Total Other$ 617,225$ 459,606 Grand Total$ 12,311,616$ 6,296,010 99 City of Denton, Texas Proposed Annual Program of Services 100 City of Denton, Texas Proposed Annual Program of Services CAPITAL IMPROVEMENT PROGRAM (CIP) PROPOSED BUDGET TheCapitalImprovementProgram(CIP)representstheCity'splanfordevelisreviewedeachyearto reflectchangingpriorities,toprovideaframeworkforidentifyingcapitalrequirements,andtoassesstheimpactof capital projects on operating budgets and the scheduling and coo TheCIPproposedbudgetappropriatesallavailableprogrammedfunds,plan plannedissuancesofnewGeneralObligation(GOs)BondsandCertificatesofObligation(COs).Availableprogrammed fundsincludeunspentbondproceeds,internalrevenuetransfersandoutsi andoutsidecontributionscomprisethebulkofplannedotherfunding.ProvidedbelowisasummaryofthetotalFY 2012-13CIPproposedbudget.FurtherCIPdetailforplannedissuancesisprovidedinthefollowingpagesforeach division. PLANNED TOTAL PROGRAMMEDOTHERCOGOTOTAL 123 AVAILABLEISSUANCESISSUANCES DIVISIONFUNDINGPROPOSED General Government$ 114,332,051$ -$ 9,155,000$ 4,080,000$ 127,567,051 Electric 41,484,102 3,104,302 40,000,000 - 84,588,404 Water 5,630,503 9,481,863 9,000,000 - 24,112,366 Wastewater 7,417,008 4,377,826 13,500,000 - 25,294,834 Solid Waste 6,559,743 361,000 7,811,000 - 14,731,743 Airport 615,265 - 2,000,000 - 2,615,265 TOTAL$ 176,038,672$ 17,324,991$ 81,466,000$ 4,080,000$ 278,909,663 1 Expected balance as of October 1, 2012 including approximately $ received for the Mayhill Road and Bonnie Brae Street expansion p 2 Certificates of Obligation (COs) sold for the Electric, Water, W supporting from revenues associated with these operations. Util Electric, Water and Wastewater utilities, but Certificates of Ob savings associated with this financing method. 3 Represents first debt sale associated with proposed $20.4 millio in November 2012. 101 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM GENERAL GOVERNMENT* CASH REQUIREMENTS DIV./DEPT.CATEGORY2012-13 TransStreets$ 4,000,000 TransPublic Art 80,000 TransTraffic Signals 1,100,000 AirportLand Acquisition 2,000,000 PoliceTraining Facility 1,000,000 FleetVehicles and Vehicle Replacements 3,000,000 Build/EquipFacility Maintenance Program** 1,500,000 PoliceAnimal Care and Adoption Center 2,555,000 TransMatching Funds for Road Improvements - VariousFuture GO Bond Program - TOTAL$ 15,235,000 General Obligation Bonds - New$ 4,080,000 Certificates of Obligation - New 11,155,000 Grand Total$ 15,235,000 *Does not reflect Available Programmed Funds or ongoing capital ** Facility Maintenance Program is for HVAC, Flooring, Roof Repl 102 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM GENERAL GOVERNMENT* CASH REQUIREMENTS 2013-142014-152015-162016-17TOTAL $ 4,000,000$ 4,000,000$ 4,000,000$ 4,000,000$ 20,000,000 80,000 80,000 80,000 80,000 400,000 - - - - 1,100,000 - - - - 2,000,000 - - - - 1,000,000 2,000,000 2,500,000 2,500,000 2,500,000 12,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000 - - - - 2,555,000 9,000,000 - - - 9,000,000 - - 10,000,000 10,000,000 20,000,000 $ 16,580,000$ 8,080,000$ 18,080,000$ 18,080,000$ 76,055,000 $ 4,080,000$ 4,080,000$ 14,080,000$ 14,080,000$ 40,400,000 12,500,000 4,000,000 4,000,000 4,000,000 35,655,000 $ 16,580,000$ 8,080,000$ 18,080,000$ 18,080,000$ 76,055,000 103 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM ELECTRIC UTILITY CASH REQUIREMENTS GROUP ASSIGNMENT NUMBERS *CATEGORY2012-13 1Automated Meter Reading$ 2,955,487 3Building Construction 40,000 7Communications Equipment 445,000 8Contingency 300,000 13Distribution Substations 10,139,000 14Distribution Transformers 1,778,214 19Feeder Extensions & Improvements 8,883,548 25New Residential & Commercial 3,131,025 28Over to Under Conversions 350,000 32Power Factor Improvement 180,234 40Street Lighting 139,594 43Tools & Equipment 136,000 45Transmission Lines 35,050,000 46Transmission Substation 20,348,000 50Vehicles 712,302 TOTAL$ 84,588,404 Revenue$ 3,104,302 Available Programmed Funds** 41,484,102 Certificates of Obligation - New 40,000,000 Grand Total$ 84,588,404 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CI category of expense. **Includes unspent bond proceeds, internal revenue transfers, an 104 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM ELECTRIC UTILITY CASH REQUIREMENTS 2013-142014-152015-162016-17TOTAL $ 2,677,921$ 2,681,313$ 2,850,695$ 425,802$ 11,591,218 950,000 - - - 990,000 275,000 335,000 290,000 285,000 1,630,000 300,000 300,000 300,000 300,000 1,500,000 9,760,000 8,419,000 4,834,000 4,303,000 37,455,000 1,863,178 1,952,201 2,045,285 2,142,431 9,781,309 10,170,500 9,288,000 7,495,000 6,968,700 42,805,748 3,289,313 3,480,361 3,521,918 3,388,723 16,811,340 350,000 350,000 350,000 350,000 1,750,000 180,000 182,500 185,000 187,500 915,234 159,500 167,100 173,500 180,450 820,144 85,000 85,000 85,000 85,000 476,000 22,000,000 21,055,000 7,820,000 4,290,000 90,215,000 32,622,000 10,180,000 11,290,000 6,870,000 81,310,000 226,000 951,064 845,898 1,421,015 4,156,279 $ 84,908,412$ 59,426,539$ 42,086,296$ 31,197,621$ 302,207,272 $ 2,571,000$ 3,288,064$ 3,174,898$ 3,741,015$ 15,879,279 22,337,412 16,138,475 8,911,398 7,456,606 96,327,993 60,000,000 40,000,000 30,000,000 20,000,000 190,000,000 $ 84,908,412$ 59,426,539$ 42,086,296$ 31,197,621$ 302,207,272 105 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM WATER UTILITY CASH REQUIREMENTS GROUP ASSIGNMENT NUMBERS *CATEGORY2012-13 2Booster Station$ 480,000 7Communications Equipment 35,000 12Distribution System Upgrade 7,105,503 17Elevated Storage 5,595,000 18Engineering 60,000 20Field Services Replacement 2,003,742 24Miscellaneous 1,025,000 27Office Furniture/Computer/Equipment 64,000 29Oversize Lines 200,000 36Replacement Lines 800,000 38State Highway Relocations 4,955,000 42Taps, Fire Hydrants, Meters 936,121 43Tools & Equipment 40,000 45Transmission Lines - 48Plant Improvements 465,000 50Vehicles 348,000 TOTAL$ 24,112,366 Revenue$ 9,481,863 Available Programmed Funds** 5,630,503 Certificates of Obligation - New 9,000,000 Grand Total$ 24,112,366 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CI category of expense. **Includes unspent bond proceeds, internal revenue transfers, an 106 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM WATER UTILITY CASH REQUIREMENTS 2013-142014-152015-162016-17TOTAL $ 4,150,000$ -$ -$ -$ 4,630,000 174,000 - - - 209,000 3,137,520 - - - 10,243,023 - - - - 5,595,000 - - - - 60,000 1,241,299 1,408,793 1,539,934 1,424,213 7,617,981 25,000 25,000 25,000 25,000 1,125,000 - - - - 64,000 200,000 200,000 200,000 200,000 1,000,000 1,200,000 1,900,000 2,300,000 2,700,000 8,900,000 6,823,692 5,127,000 2,500,000 2,500,000 21,905,692 1,102,926 1,170,573 1,251,602 1,308,557 5,769,779 25,000 10,000 55,000 10,000 140,000 - 1,000,000 2,600,000 1,950,000 5,550,000 760,000 20,000 1,020,000 10,020,000 12,285,000 425,000 299,000 176,000 588,000 1,836,000 $ 19,264,437$ 11,160,366$ 11,667,536$ 20,725,770$ 86,930,475 $ 5,275,225$ 8,060,366$ 6,517,536$ 8,075,770$ 37,410,760 489,212 100,000 150,000 650,000 7,019,715 13,500,000 3,000,000 5,000,000 12,000,000 42,500,000 $ 19,264,437$ 11,160,366$ 11,667,536$ 20,725,770$ 86,930,475 107 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM WASTEWATER UTILITY CASH REQUIREMENTS GROUP ASSIGNMENT NUMBERS *CATEGORY2012-13 5Collection System Upgrade$ 10,963,008 16Drainage Improvements 380,000 20Field Services Replacement 1,333,500 21Infiltration/Inflow 2,000,000 24Miscellaneous 1,050,000 27Office Furniture/Computer/Equipment 49,000 29Oversize Lines 200,000 36Replace Lines 1,482,036 38State Highway Relocations 2,214,000 42Taps, Fire Hydrants, Meters 108,290 43Tools & Equipment 65,000 47Wastewater Effluent Reuse 25,000 48Plant Improvements 4,909,000 50Vehicles 516,000 TOTAL$ 25,294,834 Revenue$ 4,377,826 Available Programmed Funds** 7,417,008 Certificates of Obligation - New 13,500,000 Grand Total$ 25,294,834 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CI category of expense. **Includes unspent bond proceeds, internal revenue transfers, an 108 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM WASTEWATER UTILITY CASH REQUIREMENTS 2013-142014-152015-162016-17TOTAL $ 8,211,812$ 3,305,185$ 1,845,704$ 1,973,895$ 26,299,604 30,000 55,000 380,000 380,000 1,225,000 1,118,000 - - - 2,451,500 1,500,000 1,500,000 1,500,000 1,500,000 8,000,000 25,000 25,000 25,000 25,000 1,150,000 - - - - 49,000 200,000 200,000 200,000 200,000 1,000,000 2,294,798 3,873,925 4,622,646 4,672,825 16,946,230 3,824,608 3,852,000 1,200,000 1,200,000 12,290,608 108,290 108,290 108,290 108,290 541,450 63,000 90,000 100,000 115,000 433,000 25,000 25,000 25,000 25,000 125,000 6,478,130 135,325 68,000 70,000 11,660,455 626,000 1,116,000 330,000 522,000 3,110,000 $ 24,504,638$ 14,285,725$ 10,404,640$ 10,792,010$ 85,281,847 $ 4,253,218$ 5,148,540$ 5,693,936$ 5,953,115$ 25,426,635 251,420 637,185 210,704 338,895 8,855,212 20,000,000 8,500,000 4,500,000 4,500,000 51,000,000 $ 24,504,638$ 14,285,725$ 10,404,640$ 10,792,010$ 85,281,847 109 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM SOLID WASTE * CASH REQUIREMENTS GROUP ASSIGNMENT NUMBERS **CATEGORY2012-13 6Commercial Collections$ 370,000 11Disposal / Landfill 4,415,000 24Administration 900,000 34Recycling 141,000 37Residential Collections 260,000 43Equipment 250,000 50Vehicles 1,836,000 TOTAL$ 8,172,000 Revenue$ 361,000 Certificates of Obligation - New 7,811,000 Grand Total$ 8,172,000 *Does not reflect Available Programmed Funds or ongoing capital **GROUP ASSIGNMENT (GA) NUMBERS are used for identification of C category of expense. 110 City of Denton, Texas Proposed Annual Program of Services PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM SOLID WASTE * CASH REQUIREMENTS 2013-142014-152015-162016-17TOTAL $ 130,000$ 240,000$ 150,000$ 260,000$ 1,150,000 2,175,000 1,930,000 1,580,000 1,550,000 11,650,000 - - - - 900,000 155,000 160,000 165,000 170,000 791,000 270,000 280,000 290,000 300,000 1,400,000 250,000 1,550,000 1,070,000 1,250,000 4,370,000 1,584,000 2,316,000 2,069,000 2,002,000 9,807,000 $ 4,564,000$ 6,476,000$ 5,324,000$ 5,532,000$ 30,068,000 $ 204,000$ 296,000$ 244,000$ 382,000$ 1,487,000 4,360,000 6,180,000 5,080,000 5,150,000 28,581,000 $ 4,564,000$ 6,476,000$ 5,324,000$ 5,532,000$ 30,068,000 111 City of Denton, Texas Proposed Annual Program of Services 112 EXHIBIT2 EXHIBIT3 EXHIBIT 3 {Ò¦¦Œ;’;“·Œ Cғ7z“m w;¨Ò;­· {Ғ’©ä Items Not recommended in City Manager's Budget One Year Net Program Cost Requesting Department Program Title LibraryStatistical Software Package$ 21,750 LibraryTechnical Services Manager$ 92,364 Building InspectionsAdministrative Assistant II$ 63,499 Building InspectionsLaserfiche Project$ 169,000 Gas Well ReviewGIS Technician$ 55,568 ParksWater Park Web Page Design$ 15,000 ParksRecreation Specialist- North Lakes Center $ 47,586 ParksRecreation Specialist- Youth Teen Services$ 48,201 ParksCapital Construction Crew (Crew Leader & Field Service Worker II$ 156,205 ParksLeisure Services Superintendent$ 114,567 ParksRecreation Specialist (0.5 FTE)- Denia Center $ 24,531 Fire Fire Captain$ 189,192 Police63 Taser Replacements$ 113,400 Police2 of 3 Police Lieutenants$ 269,686 PoliceDowntown Police ( 1 Sgt & 5 Officers)$ 596,588 Municipal CourtRenovation of Court #2$ 191,102 Traffic OperationsReplace and Upgrade 7 Traffic Signals$ 2,000,000 Traffic OperationsTraffic Count program for traffic volumes at 321 locations$ 102,720 Traffic OperationsLED light replacement year 1 of 4 years$ 53,034 Traffic OperationsThermoplastic hand liners (Two)$ 34,905 *Traffic OperationsDowntown Shuttle Service$ 230,000 *Traffic OperationsSupplemental Bicycle Lane funding$ 150,000 Facilities ManagementLicensed Facilities Trade Technician$ 47,700 Facilities ManagementBuilding Needs - Maintenance Items above $10,000$ 240,500 Facilities ManagementBuilding Needs - Enhancements $ 297,000 Facilities ManagementBuilding Needs - Non-Building Needs $ 108,000 Human ResourcesPerformance Management Compensation Software$ 51,145 Human ResourcesLearning Management System$ 53,344 Economic DevelopmentDenton Arts Walk of Fame$ 10,900 Economic DevelopmentCost for Chamber Budget - % of Social Media Position $ 7,000 *Economic DevelopmentDowntown Reinvestment Grant Program$ 150,000 *Economic DevelopmentCommunity Market EnhancementsTBD *City Managers OfficeRestore Council Contingency Funding$ 17,500 *PlanningCity Planner and City Engineer Dedicated for Development ProjecTBD Total Requested Not Recommended:$ 5,721,987 * Items requested by the City Council EXHIBIT4 EXHIBIT 4 CITYOFDENTON DEBTPAYMENTSVSOPERATINGBUDGETS FY201112 FY201112FY201112BUDGET FUNDBUDGETDEBTPAYMENTSHARE(%) 1 GeneralFund$127,538,702.00$13,568,043.4810.6% FleetServicesFund$13,269,934.00$257,028.671.9% TechnologyServicesFund$8,025,502.00$582,158.137.3% AirportFund$1,669,896.00$211,496.3612.7% MaterialsManagementFund$6,102,754.00$44,028.300.7% ElectricFund$140,391,103.00$17,422,854.2312.4% WaterFund$38,740,430.00$12,364,198.7731.9% WastewaterFund$24,801,568.00$6,553,689.2626.4% SolidWasteFund$22,904,336.00$4,520,548.6319.7% AllOtherFunds$33,795,409.00$0.0% $417,239,634.00$55,524,045.8313.3% 1 IncludesGeneralDebtServiceFundbudget. EXHIBIT5 EXHIBIT 5 CityofDenton Utilities&SolidWaste RateHistory&ProposedResidential(Average) Average Residential2013 1 DepartmentCustomer2009201020112012Proposed Electric1,300kWh127.23$$114.67$118.13$119.86$123.76 Water9,200gallons35.35$$35.35$38.55$42.35$45.60 Wastewater6,000gallons24.55$$24.55$24.55$27.50$30.00 SolidWasteStandardCart17.35$$17.35$18.65$19.25$20.10 SolidWasteRecycling$4.30$4.30$5.05$5.15$5.15 $208.78$196.22$204.93$214.11$224.61 1 FY2013includesanaverageEnergyCostAdjustment(ECA)rateof$0.037andbaserateof$0.0582. EXHIBIT6 EXHIBIT 6 CityofDenton PayIncreaseSurveyforNonCivilServiceEmployees FY10/11throughProposedFY12/13 AsofJuly2012 ProposedIncreasesforActualAverageIncreasesforActualAverageIncreasesfor City FY12/13FY11/12FY10/11 TBDUndergoinga Addisoncomprehensive1%lumpsum1%lumpsum compensationstudy Arlington2%TBD4%lumpsum0 2%acrosstheboard 1.5%acrosstheboardlump Carrolltonplus1%fortargetedpay$200lumpsum sum plancorrections EliminatingfourRestored4mandatoryleave mandatorycityleavedaysdays;May30,2012salary Salaryreductionandissued64 Dallaswhichwillrestore1.59%restoration(civilianonly)2%for hoursmandatoryleave payincreaseforciviliansalariesunder89,999;3%90K employees.plus Euless3.25%acrosstheboard3.25%acrosstheboard0 FarmersBranch3%meritInformationNotAvailableInformationNotAvailable 2%merit FlowerMound2%meritlimited;512%payplanshift Plustwo1%steps Sofar,0%stilllookingat FortWorth3%acrosstheboard0 options 35%meritincreases.Still Frisco3%meritbasedlumpsum03%lumpsum indiscussions,TBD Sofar,0%stilllookingat Garland0reinstated1.15% options GrandPrairie23%Merit3%merit$1,500lumpsum 3%payplanadjustment(pay Consideringa3%merit Grapevineplanshiftwithpassthroughto0 forgeneralemployees employees) 2%acrosstheboardand Hurst$650onetimeforfullInformationNotAvailableInformationNotAvailable timeemployees 3.5%merit(forthosenot3.5%merit(forthosenot Irving3.5%merit toppedout)toppedout) EXHIBIT 6 CityofDenton PayIncreaseSurveyforNonCivilServiceEmployees FY10/11throughProposedFY12/13 AsofJuly2012 ProposedIncreasesforActualAverageIncreasesforActualAverageIncreasesfor City FY12/13FY11/12FY10/11 1.5%payplanshift(nopass throughtoemployeesunless Lewisville1%merit1%payplanshiftplus1%merit theyareatthebottomofthe payrange)plus1.5%merit Average3%merit;some2%acrosstheboardwitha McKinneypositionmarketminimumof$1,000anda0 adjustmentsmaximumof$2,000 4%basepayincreasefor employeeswhoseactualsalary isbelow$36,400.Ifa¦;©­š“x­ Nocompensation salaryisclosetothatnumber, Mesquiteadjustmentshavebeen0 theywouldreceivethe proposedtoCouncil appropriatepercentageincrease toreach$36,400(nottoexceed a4%increase) 2%meritincreaseretro'dto NorthRichland2%merit,inclusiveofup10/1/11and2%marketadj.to 0 Hillstoa2%shiftinrangespayranges(salaryincreaseonly tothosethatfellbelowmin.) 3%acrosstheboard Plusimplementingseveral Plano2%acrosstheboardincrease 0 salaryadjustmentsbased oncompensationstudy 2%stepsattheendofeachpay range;thosetoppedformore 2.55%stepincrease, RichardsonNonethanoneyearwouldthenbe dependingonmerit eligibleforanincreaseupto that2% Average3.9%retroactivetoJuly 1,2011: 1.4%onetimecostofliving Southlake2%acrosstheboard˜5%DPS adjustment ˜4%NonExempt ˜2%Exempt EXHIBIT 6 CityofDenton PayIncreaseSurveyforNonCivilServiceEmployees FY10/11throughProposedFY12/13 AsofJuly2012 ProposedIncreasesforActualAverageIncreasesforActualAverageIncreasesfor City FY12/13FY11/12FY10/11 DentonCounty2%acrosstheboard2%acrosstheboard0 Proposeda3%midpoint DentonISD00 increaseforallstaff EXHIBIT7 EXHIBIT 7 EXHIBIT 7 EXHIBIT 7 EXHIBIT 7 EXHIBIT 7 EXHIBIT 7 EXHIBIT8 EXHIBIT 8 ORDINANCE NO. 20121-_______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 20110-158288 FOR ELECTRIC SERVICE; DELETINGINTERRUPTABLE POWER SUPPLY (SCHEDULE UPS);AMEND COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (SCHEDULE CGR) TO INCREASE TERM OF AGREEMENT AND TO DEFINE PARTICIPATION REQUIREMENT; AMEND RESIDENTIAL RENEWABLE ENERGY SERVICERIDER (SCHEDULE RG) TO DEFINE PARTICIPATION REQUIREMENT; AMEND GENERAL SERVICE TIME OF USE (SCHEDULE TGS) TO DEFINE PARTICIPATION REQUIREMENT; AMEND ECONOMIC GROWTH RIDER (SCHEDULE EGR) TO DEFINE PARTICIPATION REQUIREMENT; AMEND GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (SCHEDULE GRP) TO DEFINE PARTICIPATION REQUIREMENT; AMEND DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (SCHEDULE DGR) TO DEFINE PARTICIPATION REQUIREMENT;PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: ELECTRIC RATESCHEDULES PAGE RES Residential Service 23 RG Residential Renewable Energy Service Rider 45 GSS General Service Small 67 GSM General Service Medium 89 GSL General Service Large 101 TGS General Service Time of Use 123 G2 Local Government Small 156 G1 Local Government 178 WK Weekend Service 1920 AF Athletic Field 212 LS Street Lighting 234 LT Traffic Lighting 245 UFL Unmetered School Zone/Crossing Flashers 256 ULT Unmetered Traffic Lighting 267 USC Unmetered Security Camera 278 LO Other Lighting 2829 DD Security Lighting 301 DDL Decorative Downtown Lighting 323 DSL Non Standard Street Lighting 334 T1 Temporary Service 356 1 EXHIBIT 8 EGR Economic Growth Rider 378 GRP GreenSense Energy Efficiency Rebate Program 3940 ECA Energy Cost Adjustment 401 RCA Renewable Cost Adjustment 423 DGR Distributed Generation From Renewable Sources Rider 445 IWG Independent Wholesale Generator Rider 467 CGR Commercial Renewable Energy Service Rider 4950 SFR Special Facilities Rider 5152 DFR Dark Fiber Rate 523 2 EXHIBIT 8 SCHEDULE RES RESIDENTIAL SERVICE (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of November through April May through October (1) Facility Charge Single-Phase $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: 3 EXHIBIT 8 Single-Phase Facility Charge Three-Phase Facility Charge 4 EXHIBIT 8 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 5 EXHIBIT 8 SCHEDULE RG RESIDENTIAL RENEWABLE ENERGY SERVICE RIDER (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Residential Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Residential Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE WINTER SUMMER Billing Months of Billing Months of November through April May through October (1) Facility Charge $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh All Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Renewable Cost Adjustment Charge See Schedule RCA See Schedule RCA 6 EXHIBIT 8 TERM Customers wishing to receive Renewable Energy Service must sign a Residential Renewable Energy Agreement and commit to accept this service for a minimum term of 6 months. At the end of each 6 month period, a customer’s Renewable Energy Service will be extended for another 6 month period unless that customer provides a written request to terminate that service to the City of Denton Customer Service Department 15 days prior to the end of the then-current 6-month participation period. MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 7 EXHIBIT 8 SCHEDULE GSS GENERAL SERVICE SMALL (Effective10/01/11)(Effective 10/01/12) APPLICATION The General Service Small (GSS) rate is applicable to any commercial or industrial customer having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month is equal to or exceeds 21.0 kW, billing will be made under the Rate Schedule GSM and Customer must remain on the GSM rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Additional kWh 3.67¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge 8 EXHIBIT 8 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 9 EXHIBIT 8 SCHEDULE GSM GENERAL SERVICE MEDIUM (Effective10/01/11)(Effective 10/01/12) APPLICATION The General Service Medium (GSM) rate is applicable to any commercial or industrial customer having a maximum demand that meets or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $4.00/kW (all kW) plus; (3) Energy Charge per billing period First 6,000 kWh 4.43¢/kWh Additional kWh 3.66¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; 10 EXHIBIT 8 (2) The Demand Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kW demand as measured during the fifteen (15) minute period of maximum use each month; or (2) seventy percent (70%) of the maximum monthly actual demand for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GM1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GM2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GM3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 11 EXHIBIT 8 SCHEDULE GSL GENERAL SERVICE LARGE (Effective10/01/11)(Effective 10/01/12) APPLICATION The General Service Large (GSL) Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge $65.55/bill plus; (2) Demand Charge $9.33/kVA (Minimum of 250 kVA billed) plus; (3) Energy Charge per billing period First 200,000 kWh 2.14¢/kWh Additional kWh 1.21¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 12 EXHIBIT 8 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kVA demand as measured during the fifteen (15) minute period of maximum use each month; or (2) 250 kVA; or (3) seventy percent (70%) of the maximum monthly kVA actual demand for any month during the previous billing months of May through October in the twelve (12) month period ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GL1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GL2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GL3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 13 EXHIBIT 8 SCHEDULE TGS GENERAL SERVICE TIME OF USE (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any customer having a minimum demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the General Service Time of Use rate and to mitigate potential risk to ratepayers, any participant in the General Service Time of Use rate must be, at the time this rate is applied for and continuing while such rate is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE (1) Facility Charge $76.45/bill plus; (2) On-Peak Demand Charge $11.87/kVA plus; (3) Off-Peak Demand Charge $2.34/kVA plus; (4) Energy Charge per billing period 0.71¢/kWh plus; (5) Energy Cost Adjustment Charge See Schedule ECA 14 EXHIBIT 8 MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1)The Facility Charge, plus; (2)The Off-Peak Demand Charge, plus; (3)The On-Peak Demand Charge DEFINITION OF ON-PEAK HOURS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September excluding Independence Day and Labor Day. The City's on-peak hours may be changed from time to time. DEFINITION OF OFF-PEAK HOURS The City's system (off-peak) hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. 15 EXHIBIT 8 DETERMINATION OF ON-PEAK DEMAND The demand used in calculating the On-Peak Demand Charge for the billing period shall be the greater of: (1) the kVA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-peak hours as recorded by the City's demand meter, or (2) one hundred percent (100%) of the actual maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. The On Peak Demand Charge will be applied to each billing period. DETERMINATION OF OFF-PEAK DEMAND The demand used in calculating the Off-Peak Demand Charge for the billing period shall be the actual kVA demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The Off-Peak Demand Charge will be applied to each billing period. DETERMINATION OF DEMAND BILLING FOR CUSTOMERS WITH NO PEAK DEMAND HISTORY DURING OFF-PEAK MONTHS If the Customer is new or does not have a history of on-peak use for June through September, and elects to accept service on the TGS rate, the Customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (TG1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (TG2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (TG3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate 16 EXHIBIT 8 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. SCHEDULE G2 LOCAL GOVERNMENT SERVICE SMALL (Effective 10/01/11)(Effective 10/01/12) APPLICATION Applicable to any local City, County or School District having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month equals or exceeds 21.0 kW, billing will be made under the Rate Schedule G1 and Customer must remain on the G1 rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge 6.45¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA 17 EXHIBIT 8 MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 18 EXHIBIT 8 SCHEDULE G1 LOCAL GOVERNMENT SERVICE (Effective10/01/11)(Effective 10/01/12) APPLICATION The Local Government Service (G1) rate is applicable to any local City, County, or School District having a maximum demand that equals or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $6.81/kW plus; (3) Energy Charge 3.15¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, plus; (2) Demand Charge 19 EXHIBIT 8 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual kW demand supplied during the fifteen (15) minute period of maximum use during the current month as determined by City's demand meter; or (2) not less than 50% of the highest monthly actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 20 EXHIBIT 8 SCHEDULE WK WEEKEND SERVICE (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $20.86/bill Three-Phase $26.08/bill plus; (2) Demand Charge $6.72/kW (First 20 kW not billed) plus; (3) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Next 3,500 kWh 3.67¢/kWh Additional kWh 2.70¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING (1) Facility Charge plus; 21 EXHIBIT 8 (2) Demand Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter less 20 kW; or (2) zero (0). ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 22 EXHIBIT 8 SCHEDULE AF ATHLETIC FIELD (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to all electric service metered at one point for use to light specified areas for athletic events. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $21.07/bill Three-Phase $31.60/bill plus; (2) Energy Charge per billing period Billing months of June through September: Peak (2:00 PM to 7:00 PM) 7.96¢/kWh Off Peak (All Other Hours) 3.98¢/kWh Billing months of October through May: All hours 3.98¢/kWh plus; (3) Demand Charge Billing months of June through September: Peak (2:00 PM - 7:00 PM) $4.94/kW Off Peak (All Other Hours) $1.17/kW Billing months of October through May: All hours $1.17/kW 23 EXHIBIT 8 plus: (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase or three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 24 EXHIBIT 8 SCHEDULE LS STREET LIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge LSA 100 W Sodium Vapor $5.15/bill LSB 250 W Sodium Vapor $7.30/bill LSC 400 W Sodium Vapor $9.19/bill plus; (2) Energy Cost Adjustment Charge(Current ECA per Schedule ECA) (Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor LSA 100 W Sodium Vapor 48 kWh LSB 250 W Sodium Vapor 105 kWh LSC 400 W Sodium Vapor 159 kWh TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120, 240, or 480 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 25 EXHIBIT 8 SCHEDULE LT TRAFFIC LIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHLY RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 26 EXHIBIT 8 SCHEDULE UFL UNMETERED SCHOOL ZONE/CROSSING FLASHERS (Effective 10/01/11)(Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered school zone/crossing flashers. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of school zone/crossing flashers will determine the average kWh usage. This average consumption will be billed for each school zone/crossing flasher once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 48 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 27 EXHIBIT 8 SCHEDULE ULT UNMETERED TRAFFIC LIGHTING (Effective 10/01/11)(Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered traffic signals. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of lighted intersections will determine the average kWh usage. This average consumption will be billed for each lighted intersection once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 904 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT 28 EXHIBIT 8 The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 29 EXHIBIT 8 SCHEDULE USC UNMETERED SECURITY CAMERA (Effective 10/01/11)(Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered security cameras. NET ANNUAL RATE (1) Facility Charge $15.80 plus; (2) Energy Charge 5.62¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on technical information of installed equipment. This calculated consumption will be billed for each camera once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = annual kWh per camera kWh Rate Annual Usage = 300 kWh per camera per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 30 EXHIBIT 8 SCHEDULE LO OTHER LIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to Texas Department of Transportation unmetered and metered safety lighting systems and continuous lighting systems as those terms are defined in Texas AdministrativeCode, Title 43, Part 1, Chapter 25, Subchapter A, Rule §25.11. DEFINITION The following definitions apply to this Schedule LO: Hours of Operation Per Billing Period = 333 hours Bulb Wattage is the rated wattage of the luminaire bulb NET MONTHLY RATE LOA (Unmetered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Bulb Wattage/1000) x (Hours of Operation Per Billing Period) ENERGY CHARGE LOA (Unmetered Lighting) Billing for the Energy Charge shall be based on estimated kWh consumption during the billing period. Energy Charge = (kWh Rate x Bulb Wattage/1000) x (Hours of Operation Per Billing Period) NET MONTHLY RATE LOB (Metered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA 31 EXHIBIT 8 32 EXHIBIT 8 ENERGY CHARGE LOB (Metered Lighting) Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 33 EXHIBIT 8 SCHEDULE DD SECURITY LIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge DSA 100 W Sodium Vapor $ 8.14/bill DSB 250 W Sodium Vapor $10.76/bill DSC 400 W Sodium Vapor $12.97/bill DHA 250 W Metal Halide $12.65/bill DHB 400 W Metal Halide $15.07/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DSA 100 W Sodium Vapor 48 kWh DSB 250 W Sodium Vapor 105 kWh DSC 400 W Sodium Vapor 159 kWh DHA 250 W Metal Halide 105 kWh DHB 400 W Metal Halide 159 kWh TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled, metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. 34 EXHIBIT 8 Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) wood pole with the necessary lighting hardware and overhead conductor for each installed light, at a distance not to exceed eighty (80') feet from existing lines, at no charge to the Customer. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where the eighty (80’) feet distance limit is exceeded or service of the type desired by the Customer is otherwise not available at the point of service. TERM OF CONTRACT A two (2) year contract shall be agreed to and signed by each Customer desiring Security Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the Customer’s monthly municipal utilities bill. In the event that a Customer requests the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be canceled by either party upon thirty (30) days notice. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 35 EXHIBIT 8 SCHEDULE DDL DOWNTOWN DECORATIVELIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to any Customer requesting service on the perimeter of the historic County Courthouse Square located in downtown Denton and served by the City’s existing electric distribution system for outdoor area lighting at said location. NET MONTHLY RATE (1) Facility Charge $4.04/bill plus; (2) Energy Cost Adjustment (Current ECA per Schedule ECA) (350 kWh per Customer) TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City’s standards and subject to its published rules and regulations. The service is provided between dusk and midnight. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. FACILITY CHARGE The Facility Charge shall be assessed on each bill rendered. 36 EXHIBIT 8 SCHEDULE DSL NON-STANDARD STREET LIGHTING (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable to street lighting owned and maintained by the Customer. Availability of this service is contingent on the existence of an executed Special Facilities Rider between the legally responsible party and the City under which the legally responsible party accepts all responsibilities, both legal and financial, related to operation and maintenance of the subject lights, including but not limited to payment of all applicable energy charges. NET MONTHLY RATE (1) Facility Charge $8.14/bill plus; (2) Energy Charge 5.62¢/kWh Energy Charge = (kWh Rate) x (Bulb Wattage Factor) plus; (3) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DLSA 100 W Sodium Vapor 48 kWh DLSB 250 W Sodium Vapor 105 kWh DLSC 400 W Sodium Vapor 159 kWh DLHA 250 W Metal Halide 105 kWh DLHB 400 W Metal Halide 159 kWh Other – For any lamp types installed by owner that are not included in the list above, a Bulb Wattage Factor will be determined for each unique type. TYPE OF SERVICE The City shall deliver single-phase, sixty (60) cycle service at 120 or 240 volts to the site for non- standard streetlight fixtures supplied by the customer, and installed by the City in accordance with 37 EXHIBIT 8 Municipal Code requirements. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. ADDITIONAL SERVICE CHARGES If the City is required to maintain the privately owned lights to ensure public safety, the owner of the lights may be subject to additional service charges. The additional service charges shall be the actual cost of performing any work required to perform the necessary maintenance including but not limited to: Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Any materialneededto repair and/or maintain facilities will be billed at City of Denton Warehouse cost plus 25%. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 38 EXHIBIT 8 SCHEDULE T1 TEMPORARY SERVICE (Effective10/01/11)(Effective 10/01/12) APPLICATION Applicable when a Customer requests electric service on a short term or temporary basis where a customer has received a permit from the City Building Inspections Department. This rate is not applicable after the certificate of occupancy or building final inspection has been issued. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period 7.11¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service at sixty (60) cycles at a standard secondary voltage 39 EXHIBIT 8 available at the site.Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. ADDITIONAL TEMPORARY SERVICE CHARGES Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Material that cannot be salvaged shall be billed at City of Denton Warehouse cost plus 25%, plus applicable sales tax. At the time a temporary service is removed or converted, any loss of the installed material due to negligence or willful action by the Customer will be billed separately to the Customer at replacement cost plus 25%, plus applicable sales tax. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 40 EXHIBIT 8 SCHEDULE EGR ECONOMIC GROWTH RIDER (Effective10/01/11)(Effective 10/01/12) PURPOSE The purpose of this rider is to facilitate local economic growth and expand the ad valorem tax base of the City of Denton. AVAILABILITY This rider is available to the Customers who: (1)Receive service from Rate Schedules GSL or TGS; and (2)Pay City of Denton ad valorem tax; and (3)Receive no electric service discounts other than those specifically defined in the GSL or TGS rate schedules. APPLICATION This rider is available to electric service supplied at any one location. It is for firm electric service applicable to new and existing Customers as described below, over a five (5) year period. This rider is available to the following classes of Customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 1,000 kVA, as estimated and mutually agreed upon by the DME General Manager and the customer. (2) Existing customers served under Rate Schedules GSL or TGS who increase their prior existing metered demand by 1,000 kVA. This increase shall be verified by sub-metering (at the Customers expense) the additional load. If sub-metering is not possible, at the discretion of the General Manager, the increase may be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the General Manager and the Customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. In light of additional costs associated with the Economic Growth Rider and to mitigate potential risk to ratepayers, any participant in the Economic Growth Rider must be, at the time this rider is 41 EXHIBIT 8 applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE The Customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period Reduction to Billing Demand First Year 50% Second Year 40% Third Year 30% Fourth Year 20% Fifth Year 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 42 EXHIBIT 8 SCHEDULE GRP GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (Effective10/01/11)(Effective 10/01/12) PROGRAM SUMMARY The objective of the GreenSense Energy Efficiency Rebate Program (“Program”) is to reduce energy demand and consumption by promoting energy conservation, thereby reducing the utility bills of Denton Municipal Electric (DME) customers, reducing the peak load of the DME’s electric system, reducing emissions in the state, and promoting energy conservation. The Program offers incentives, in the form of rebates on the electric service bills of DME retail customers and cash incentives to builders. Cash incentives may be paid to residential retail customers for the installation of photovoltaic applications. In light of additional costs associated with the GreenSense Energy Efficiency Rebate Program and to mitigate potential risk to ratepayers, any participant in the GreenSense Energy Efficiency Rebate Program must be, at the time this program is applied for and continuing while such program is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. Program applicants will be able to qualify for multiple incentives simultaneously. A separate application may be necessary for each incentive. The Program will be in effect each fiscal year beginning on October 1, until the allotted funding is depleted or until cancellation of the program by DME. At the time the funds are depleted, no additional applications for participation will be accepted until the next fiscal year. Qualifying applicants must receive electric service from DME. The Program guidelines and payments are subject to change by DME without prior notice. DME may, at any time, discontinue the Program without prior notice.The current program guidelines may be found in the GreenSense Energy Efficiency Rebate Program Manual located at www.dmepower.com. 43 EXHIBIT 8 SCHEDULE ECA ENERGY COST ADJUSTMENT (Effective10/01/11)(Effective 10/01/12) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA’s energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: ECA Balancing Account = (Actual plus Projected ECA revenue) – (Projected Energy Cost) Where: Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) + (Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA = [(Projected Energy Cost) + (ECA Balancing Account)] / (Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Energy Cost Adjustment Charge = kWh ECA rate 44 EXHIBIT 8 EXTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position. 45 EXHIBIT 8 SCHEDULE RCA RENEWABLE COST ADJUSTMENT (Effective 10/01/12) The Renewable Cost Adjustment (RCA) rate shall be set by the Public Utilities Board. The RCA rate shall be reviewed on a quarterly basis and adjusted as defined below to recover the cost of renewable energy delivered to customers. Renewable energy cost includes the Energy Cost Adjustment Charge (see Schedule ECA) plus the cost of Renewable Energy Credits (REC) purchased. RENEWABLE COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The RCA Balancing Account shall be calculated using the following formula: RCA Balancing Account = (Actual plus Projected RCA revenue) – (Projected Renewable Energy Cost) Where: Projected Renewable Energy Cost = (Actual plus Projected cumulative ECA cost) + (Actual plus Projected REC cost) During the last month of each fiscal year quarter (December, March, June, and September), the DME General Manager or his/her designee shall calculate the RCA Balancing Account balance. In the event that the RCA Balancing Account balance calculated during the last month of each fiscal quarter is greater than zero dollars ($0) by $100,000 or more during the next quarter, the General Manager or his/her designee shall recommend to the Public Utilities Board an RCA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The Public Utilities Board shall consider that recommendation and may adjust the RCA rate for the quarter immediately following. RENEWABLE COST ADJUSTMENT CALCULATION RCA = ECA + [(Projected Renewable Energy Cost) / (Projected kWh sales)] Where: Projected Renewable Energy Cost = Actual + Projected REC cost 46 EXHIBIT 8 RENEWABLE COST ADJUSTMENT CHARGE The Renewable Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Renewable Cost Adjustment Charge = kWh RCA rate EXTRAORDINARY CIRCUMSTANCE RCA RATE ADJUSTMENT In the event that an Extraordinary Circumstance ECA Rate Adjustment is made (see Schedule ECA) the RCA shall be adjusted concurrently with the Extraordinary Circumstance ECA Rate Adjustment by substituting the new ECA rate in the Renewable Cost Adjustment Calculation formula above. 47 EXHIBIT 8 SCHEDULE DGR DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (Effective 10/01/11)(Effective 10/01/12) APPLICATION This Rider is available to any retail customer receiving electric service under a DME electric rate schedule who owns and operates an on-site generating system powered by a renewable resource capable of producing power, and who interconnects with the DME electric system. Renewable energy technology is any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly or indirectly from the sun or wind. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources. This Rider applies to a Customer-owned generating system that primarily offsets part or all of the Customer’s electric service provided by DME. If the Customer-owned generating system larger than 50kW or if the system’s primary purpose is to sell energy to the grid and not offset the Customer’s consumption, special arrangements and contract may be necessary. In light of additional costs associated with the Distributed Generation From Renewable Sources Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Generation From Renewable Sources Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. CONDITIONS OF SERVICE All charges, character of service, and terms and conditions of the electric rate schedule under which the Customer receives service shall apply except as expressly altered by this Rider. The Customer shall comply with the current DME technical requirements for distributed generation interconnection. The Customer shall obtain approval from DME before the Customer energizes the customer’s on-site generating system or interconnects it with the DME electric system. The Customer shall submit to DME a completed interconnection application form and signed Standard Agreement for Interconnection and Parallel Operation of Distributed Generation Agreement. The minimum term of an Agreement under this Rider is one year, extended automatically unless terminated by either party with sixty days advance written notice The Customer is responsible for the costs of interconnecting with the DME electric system, including transformers, service lines, or other equipment determined necessary by DME for safe installation and operation of the Customer’s equipment with the City’s system. The Customer is responsible for any costs associated with required inspections and permits. 48 EXHIBIT 8 METERING Metering under this Rider shall be performed by a single meter capable of registering the flow of electricity in two directions (delivered and received) to determine the Customer’s net energy flow. RATE Beginning in a billing period after a Customer receives approval to interconnect the Customer’s on-site generating system from the City of Denton, all energy generated by the Customer’s system and delivered to the DME electric system will be considered renewable energy. The Customer shall be billed for all energy delivered by DME to the Customer under the approved residential rates. For any generation delivered by the Customer’s system to the DME system up to the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Generation Credit = [(kWh delivered from the Customer’s approved system) x (Customer’s base electric service rate)] + [(kWh delivered from the Customer’s approved system) x (RCA rate)] For all energy delivered by the Customer’s system to the DME system that exceeds the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Excess Generation Credit = (kWh delivered from the Customer’s system) x RCA rate (see Schedule RCA). Any Billing Period Credit shall be applied to the utility charges due from the Customer to the City of Denton for the billing period. INDEMNIFICATION The Customer operating the renewable distributed generation system indemnifies DME and holds DME harmless for all damages and injuries to DME, the Customer, or others arising out of Customer’s use, ownership or operation of Customer’s distributed generation facilities in parallel with DME’s system. Customer is solely responsible for providing adequate protection for operating in parallel with DME’s system in such a manner that faults or other disturbances on the DME system do not cause damage to the Customer’s distributed generation equipment. 49 EXHIBIT 8 SCHEDULE IWG INDEPENDENT WHOLESALE GENERATOR (Effective 10/01/12) APPLICATION The Independent Wholesale Generator (IWG) rate is applicable to non-renewable generating installations of ten (10) MW or less interconnected to and operating in parallel with DME’s distribution system, for the sole purpose of delivering the net output (gross output minus auxiliary load and step up transformer loses) of said generating installation to the Electric Reliability Council of Texas (ERCOT) transmission grid for sale in the ERCOT wholesale power market. DME will interconnect the IWG pursuant to the terms of the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. Other services or special requirements for interconnection of a specific generating facility not included in the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, requested by the IWG Customer, or required by DME may be provided pursuant to negotiation and agreement by both the IWG Customer and DME. The provision of said additional services or requirements shall be recorded in the form of an addendum to the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. TERMS AND CONDITIONS OF SERVICE At a minimum, the IWG Customer shall comply with the current DME technical requirements for independent wholesale generation interconnection specified in the DME standard Agreement for Interconnection and Parallel Operation of Distributed Generation. The IWG Customer may not begin construction of its facilities until an Agreement for Interconnection and Parallel Operation of Distributed Generation has been signed by both the IWG Customer and the City of Denton. The IWG Customer shall obtain approval from DME before the IWG Customer begins operation of its generating system or interconnects it with the DME electric system. The IWG Customer is responsible for any costs associated with required City of Denton and/or DME inspections and permits. PRE-INTERCONNECTION STUDIES DME may, at its sole discretion perform pre-interconnection studies DME or the City of Denton deems appropriate, which may include, but are not restricted to, a service study, coordination study, emissions impact study, and utility system impact study. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular IWG generation system to be interconnected, DME’s distribution system at the specified proposed location(s), and environmental characteristics of the Denton County area. Such studies will also determine whether the electric interconnection can be made consistent with safe and reliable operation of DME’s distribution system. The cost of such analysis will be 50 EXHIBIT 8 the responsibility of the IWG Customer. A cost estimate will be provided and agreed to by the IWG Customer prior to DME or the City performing the studies. SYSTEM MODIFICATIONS The IWG Customer will be required to install, operate, and maintain in good order and repair, and without cost to DME, all facilities required by DME for the safe operation of the IWG system in parallel with DME’s electric system. The IWG Customer’s IWG system shall be installed, operated, and maintained by the IWG Customer at all times in conformity with good electrical practice and shall comply with the National Electric Code, the National Electric Safety Code, any applicable local codes and any applicable DME service standards included in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation Any modifications or additions to DME’s electrical system caused by the addition of the Customer’s IWG system will be solely at the IWG Customer’s expense. However, the IWG Customer will not acquire any ownership in these facilities. The modifications and additions may include, but are not restricted to, the upgrading of transformer insulation levels and lightening arrester ratings, the replacement of circuit breakers due to increased fault current levels, additional protective relaying and any additional metering. Further, DME may require that a communications channel(s) be installed at the IWG Customer’s expense as part of the relay protection, remote control, remote metering, SCADA telemetry, and/or direct voice contact between DME and the IWG Customer. RATE The IWG Customer shall be subject to special contract arrangements and the rates charges to the Customer may consist of a minimum monthly Facility Charge plus a monthly distribution charge plus a monthly distribution line loss charge. These charges shall be calculated as follows: Monthly Facility Charge: The IWG Customer shall pay DME a monthly facility charge sufficient to compensate DME for its investment in special facilities dedicated exclusively to providing the IWG Customer service and/or that are necessary to ensure that the quality of service provided to other customers is not adversely affected pursuant to the requirements of the SYSTEM MODIFICATION provisions set forth above. The minimum monthly facility charge shall be $65.55. Distribution Delivery Charge: The IWG Customer shall pay DME a monthly distribution delivery charge equal to $2.06 times the IWG Customer’s delivery demand. The IWG Customer’s delivery demand shall be the greatest of the IWG Customer’s maximum 15 minute net capacity output as measured at the IWG Customer’s IWG site, the 51 EXHIBIT 8 minimum billing kW shall be as established in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, or 1,500 kW. 52 EXHIBIT 8 Distribution Line Loss Charge: The IWG Customer shall pay DME a monthly distribution line loss charge equal to the applicable monthly Energy Cost Adjustment (ECA) charge (see schedule ECA) times monthly energy losses. Monthly energy losses shall be calculated as the metered monthly kilowatt-hour output of the IWG Customer’s IWG generating unit(s) as measured at the IWG Customer’s IWG site times five (5.0) percent. Generator Auxiliary Load Standby Charge: The IWG Customer shall pay the DME General Service Large rate for any electric service used by the IWG Customer to serve generator auxiliary load as a result of demand and energy requirements placed upon DME resulting from planned or forced outage of the IWG Customer’s IWG generation unit(s). Electric Service to Structures and Other Facilities Other than Generator Auxiliary Load: All charges, character of service, and terms and conditions of the applicable City of Denton electric rate schedule(s) under which the IWG Customer receives DME electric service for structures or other facilities not specifically supplying auxiliary service directly to its generating unit(s) shall apply except as expressly altered by this Rider. 53 EXHIBIT 8 SCHEDULE CGR COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (Effective10/01/11)(Effective 10/01/12) This Rider defines the manner by which commercial customers may purchase predetermined 1000 kWh blocks of energy or 100% of actual energy consumption from renewable resources by substituting the Renewable Cost Adjustment Charge (see Schedule RCA) in lieu of the Energy Cost Adjustment (see Schedule ECA) specified in their applicable rate Schedule. APPLICATION This Rider is applicable to any non-residential Customer receiving service under rate schedules GSS, GSM, GSL, G1, TGS, or WK at one point of delivery and measured through one meter. This Rider is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Commercial Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Commercial Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE A customer eligible for service under this Rider may elect to purchase renewable energy at the Renewable Cost Adjustment Charge, determined in accordance with Schedule RCA. Said customer may elect to purchase 1000 kWh blocks of energy at the RCA rate, with the remainder of the customer’s energy use charged at the ECA rate or to purchase all energy used at the RCA rate. All other charges contained in the customer’s applicable rate Schedule shall continue to apply, as specified in said Schedule. Said customer’s energy charge shall be calculated as follows. Either: Total Energy Charge = [(Y x 1000 kWh) x RCA] + {[(Total Energy Used) - (Y x 1000 kWh)] x ECA} Where: Customer has elected to purchase a portion of its energy consumption at the RCA and: Y= Number of 1000 kWh RCA blocks elected by said customer 54 EXHIBIT 8 Or: Total Energy Charge = Total Energy Used x RCA Where: Customer has elected to purchase its entire energy consumption at the RCA TERMS OF SERVICE To exercise the energy supply choice made available by this Rider, an eligible customer must enter into a separate written agreement with Denton Municipal Electric that specifies either a specific number of 1000 kWh energy blocks to be purchased at the Renewable Cost Adjustment Charge or specifies that 100% of said customer’s monthly energy consumption is to be purchased at the Renewable Cost Adjustment Charge. The minimum term for a Schedule CGR agreement shall be 12 months. This Rider replaces the Energy Cost Adjustment Charge for participating customers. 55 EXHIBIT 8 SCHEDULE SFR SPECIAL FACILITIES RIDER (Effective10/01/11)(Effective 10/01/12) (1) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices not normally and readily available at the location which the customer requests service, the total cost incurred by DME for all facilities installed, buried, relocated and/or removed shall be the responsibility of the Customer and subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to the DME providing service to the Customer. (2) Billing for services beyond the delivery of electricity, utilized by the Customer, may be subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to DME providing service to Customer. 56 EXHIBIT 8 SCHEDULE DFR DARK FIBER (Effective10/01/11)(Effective 10/01/12) APPLICATION Service is available to any customer to the extent there is any excess capacity respecting Denton Municipal Electric’s fiber optic cable facilities, within the area served by Denton Municipal Electric’s (“DME”) distribution system, for the purpose of point-to-point dark fiber optic cable connectivity intended for the transport of high-speed data. MONTHLY RATE (1) Fiber Mileage Charge $400 per fiber pair/mile, per month; and (2) Building Presence Charge $180 per location, per month Total Fiber Rate $580 per fiber pair/mile, per month, per location RATE GUIDELINES (1)The minimum quantity of fiber to be leased shall be one (1) fiber pair. All fiber pairs furnished to the customer shall consist of two (2) fibers. (2)The minimum Fiber Mileage Charge is for one (1) fiber pair/mile. (3)After the first mile, Fiber Mileage Charge will be charged in increments of the nearest one-tenth (0.1) mile. (4)All costs associated with ingress to a customer’s location from the DME right-of-way shall be billed directly to the customer, and are not included in the Fiber Mileage Charge and the Building Presence Charge and shall be paid to Denton Municipal Electric within fifteen (15) calendar days from the date of issuance of the bill. (5)The Fiber Mileage Charge calculation is based upon the actual fiber pair distance along the DME distribution system rights-of-way. The Fiber Mileage Charge is not based upon any other method of calculation. The Fiber Mileage Charge is not based upon any distance determination, such as the distance the crow flies, or from point-to- point. (6)The Fiber Mileage Charge distance shall be capped at two (2) times the direct point-to- point distance. DISCOUNTS Special discounts will be applied for fiber pairs to the same location, and for fiber pairs for long- term contracts in the amounts as shown in the table below. The discount applicable to a customer shall not be a cumulative total of all the discounts offered. The discount any customer is entitled to shall be the largest single discount applicable to that customer’s service. 57 EXHIBIT 8 Discount Type DiscountDiscount Type Discount Term of Lease% Number of Fibers% 5-7 Years 30% 1-2 Fibers /Mileage Charge 0% 8-10 Years 45% 3-6 Fibers/ Mileage 9.7% Charge 7-12 Fibers/Mileage Charge 19% 12 or more Fibers/Mileage 28.7% Charge TYPE OF SERVICE The City shall furnish, install, maintain, and deliver only point-to-point dark fiber connectivity for the purpose of transporting high-speed data with a maximum loss of no more than 9.0 dB. PAYMENT Bills are due when rendered and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF LEASE CONTRACT All dark fiber lease contracts shall be for a minimum term of five (5) years. 58 EXHIBIT 8 SECTION 2. The Assistant City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedule GRP, as the installation of energy efficient upgrades is in the best interest of the City of Denton, Texas, as such will reduce energy demand and consumption, reduce the peak load of the DME’s electric system, reduce emissions in the state, and promote energy conservation, which are public purposes of the City. SECTION 3. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 4. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 5. This ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric effective with the first billing issued on and after October 1, 20121; and a copy of said rates shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the _______ day of ______________________, 20121. _______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ 59 EXHIBIT 8 EXHIBIT 8 ORDINANCE NO. 20112-__________ AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 20101-229163 FOR WATER SERVICE RATES AND WATER RATES; AMENDING THE RESIDENTIAL WATER SERVICE RATE (SCHEDULE WR); AMENDING THE COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (SCHEDULE WC); AMENDING THE METERED WATER FROM FIRE HYDRANT RATE (SCHEDULE WFH); AMENDING THE WHOLESALE TREATED WATER SERVICE RATE TO THE UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WW); AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); AMENDING THE WHOLESALE RAW WATER PASS- THROUGH RATE TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (SCHEDULE WCL); AMENDING THE WATER TAP AND METER FEES, AMENDING THE WATER LABORATORY TESTING FEES; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES PAGE WR Residential Water Service 2 WC Commercial/Industrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 9 WW Wholesale Treated Water Service to Upper Trinity Regional Water District 10 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 12 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District 13 from Lake Chapman into Lake Lewisville Water Tap and Meter Fees 14 Fire Hydrant Installation 16 Water Laboratory Testing Fees 17 Special Facilities Rider 18 Special Conditions Rider 18 EXHIBIT 8 SCHEDULE WR RESIDENTIAL WATER SERVICE (Effective 10/01/112) APPLICATION Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units, with wastewater service within the corporate limits (WR) of the City of Denton, Texas. Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, (WRO) Texas with or without wastewater service. Applicable where the metered water is used for domestic purposes and is not returned to the (WRN) wastewater system for collection and treatment. Applicable where the metered water is used for landscape irrigation purposes and is not returned to (WRI) the wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WRIO) treatment. Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. (WR) MONTHLY RATE – RESIDENTIAL WATER SERVICE; (WRN) AND MONTHLY RATE – METERED WATER NOT RETURNED TO WASTEWATER SYSTEM FOR COLLECTION AND TREATMENT (1) Facility Charge Per Bill 3/4 inch Meter $ 12.0012.95 1 inch Meter $ 15.6516.90 1-1/2 inch Meter $ 20.0521.85 2 inch Meter $ 22.9027.70 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. 0-15,000 gals $ 3.303.55 $ 3.303.55 15,001-30,000 gals $ 3.303.55 $ 4.805.15 30,001-50,000 gals $ 3.303.55 $ 6.006.65 Over 50,000 gals $ 3.303.55 $ 7.208.40 2 EXHIBIT 8 (WRO) MONTHLY RATES – WATER SERVICE OUTSIDE CORPORATE LIMITS MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $ 13.8014.90 1 inch Meter $ 18.0019.45 1-1/2 inch Meter $ 23.0525.15 2 inch Meter $ 26.3531.85 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.804.10 $3.804.10 15,001-30,000 gals $3.804.10 $5.505.95 30,001-50,000 gals $3.804.10 $6.907.65 Over 50,000 gals $3.804.10 $8.309.65 (WRI) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $12.0012.95 1 inch Meter $15.6516.90 1-1/2 inch Meter $20.0521.85 2 inch Meter $22.9027.70 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.303.55 $4.805.15 15,001-30,000 gals $3.303.55 $6.006.65 30,000 – 50,000 gals $3.303.55 $7.208.40 Over 50,000 gals $3.303.55 $8.409.90 3 EXHIBIT 8 (WRIO) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $13.8014.90 1 inch Meter $18.0019.45 1-1/2 inch Meter $23.0525.15 2 inch Meter $26.3531.85 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.804.10 $5.505.95 15,001-30,000 gals $3.804.10 $6.907.65 30,000 – 50,000 gals $3.804.10 $8.309.65 Over 50,000 gals $3.804.10 $9.6511.40 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: Gallons in rate block rate per 1,000 gal. in rate block 1,000 gallons 4 EXHIBIT 8 RETAIL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. Under Stage 4 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. 5 EXHIBIT 8 SCHEDULE WC COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (Effective 10/01/112) APPLICATION Applicable to all commercial and industrial users, or other water users not otherwise classified under (WC) this ordinance, for all water provided at one point of delivery and measured through one meter. Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one (WCO) point of delivery and measured through one meter, with or without wastewater service. Applicable where the metered water is used for commercial purposes and is not returned to the (WCN) wastewater system for collection and treatment. Applicable where metered water is used for landscape irrigation purposes and is not returned to the (WCI) wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WCIO) treatment. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. (WC)(WCN) MONTHLY RATE and (1) Facility Charge Per Bill 3/4 inch Meter $21.95 l inch Meter $26.25 l - l/2 inch Meter $31.10 2 inch Meter $40.1541.35 3 inch Meter $84.0089.05 4 inch Meter $155.15164.45 6 inch Meter $193.85220.50 8 inch Meter $225.45290.00 10 inch Meter $271.10387.40 (2) Volume Charge $3.703.95 per 1,000 gallons 6 EXHIBIT 8 (WCO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $46.1547.55 3 inch Meter $96.60102.40 4 inch Meter $178.45189.10 6 inch Meter $222.90253.60 8 inch Meter $259.30333.50 10 inch Meter $311.75445.50 (2) Volume Charge $4.254.55 per 1,000 gallons (WCI) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $21.95 1 inch Meter $26.25 l -l/2 inch Meter $31.10 2 inch Meter $40.1541.35 3 inch Meter $84.0089.05 4 inch Meter $155.15164.45 6 inch Meter $193.85220.50 8 inch Meter $225.45290.00 10 inch Meter $271.10387.40 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $3.703.95 $4.454.90 (WCIO) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $46.1547.55 3 inch Meter $96.60102.40 4 inch Meter $178.45189.10 6 inch Meter $222.90253.60 8 inch Meter $259.30333.50 10 inch Meter $311.75445.50 7 EXHIBIT 8 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $4.254.55 $5.105.65 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption Rate per 1,000 gallons 1,000 COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 8 EXHIBIT 8 SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 10/01/112) APPLICATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the “Fire Hydrant Meter Use Agreement.” DEPOSIT $1,100 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. The deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $ 4.304.75 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the “Fire Hydrant Meter Use Agreement”, failure rd by the Customer to return the meter to water utilities by the 3 day of each month for reading, results in acceptance by the Customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $ 83.9592.35 per bill PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 9 EXHIBIT 8 SCHEDULE WW WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/112) APPLICATION Applicable to all wholesale treated water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD) Not applicable for temporary, standby, or supplementary service. MONTHLY CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2/WW3) (1) Facility Charge $198.00214.00per bill (2)Water Volume Rate $0.390.42per 1,000 gallons (WD2/WD3) (3) Subscribed Demand Rate $456,915494,610per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in full, in accordance with the bill payment delinquency provisions provided for below. MINIMUM BILLING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for any one day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. 10 EXHIBIT 8 BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 11 EXHIBIT 8 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/112) APPLICATION Applicable to all raw water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD), per the Interim Sale of Wholesale Raw Water Contract MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.40100.3899per 1,000 gallons PAYMENT th Denton shall render bills by the tenth (10) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 EXHIBIT 8 SCHEDULE WCL WHOLESALE RAW WATER PASS-THROUGH TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (Effective 10/01/112) APPLICATION Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.02450.0249per 1,000 gallons PAYMENT Denton shall render bills monthly. Bills shall be due and payable within twenty (20) calendar days of the date a bill for service is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 13 EXHIBIT 8 WATER TAP AND METER FEES (Effective 10/01/112) APPLICATION This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Tap Meter Paved Street Unpaved Street 1 inch 5/8 inch x 3/4 inch $1,805.00 2,105.00 $ 805.00 1,105.00 1 inch 3/4 inch x 3/4 inch $1,845.00 2,145.00 $ 845.00 1,145.00 1 inch 1 inch $1,875.00 2175.00 $ 875.00 1,175.00 2 inch 1-1/2 inch $2,570.00 2870.00 $1,570.00 1,870.00 2 inch 2 inch $2,580.00 2880.00 $1,580.00 1,880.00 WATER METER FEES Size of Meter 5/8 inch x 3/4 inch $305.00 3/4 inch x 3/4 inch $345.00 1 inch $375.00 1-1/2 inch $670.00 2 inch $680.00 WATER METER RELOCATIONS Size of Meter Relocation of 10 Feet or Less 3/4 inch $285.00 1 inch $285.00 1-1/2 inch $340.00 2 inch $390.00 14 EXHIBIT 8 WATER LINE TAPS Size of Tap Paved Street Unpaved Street 1 inch $1,500.00 1,800.00 $500.00 800.00 2 inch $1,900.00 2,200.00 $900.00 1,200.00 4 inch $3,200.00 3,500.00 $1,800.002,100.00 6 inch $3,400.00 3,600.00 $2,000.00 2,200.00 8 inch $4,400.00 4,600.00 $3,000.00 12 inch $5,500.00 $4,000.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinkler systems. 15 EXHIBIT 8 FIRE HYDRANT INSTALLATION (Effective 10/01/112) APPLICATION This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDRANT INSTALLATION FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hydrant Installation Paved Street Unpaved Street Installation Fee $5,030.005,350.00 $3,085.003,950.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. 16 EXHIBIT 8 WATER LABORATORY TESTING FEES (Effective 10/01/112) APPLICATION Applicable to all customers and entities requesting testing and analysis services from the City of Denton Water/Wastewater Laboratory RATE Fee Description Fee Per Test Colilert (P/A) $20.00 Colilert Quantitray (MPN) $25.00 Heterotrophic Plate Counts (HPC) $25.00 Fecal Coliform (MF) $30.00 Records Search $25.00/hour The testing and analysis fees are established to recover the cost of testing water and wastewater samples. MINIMUM BILLING $20.00 - Testing $25.00 - Records Search PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 17 EXHIBIT 8 SPECIAL FACILITIES RIDER (Effective 10/01/112) All service shall be offered from available facilities. If a Customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the Customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/112) If a special condition or circumstance exists not otherwise provided for by the water rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 18 EXHIBIT 8 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms of provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on and after October 1, 20112; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _____ day of __________________ 20112. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 19 EXHIBIT 8 EXHIBIT 8 ORDINANCE NO. 20112-_________ AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 201011-230162; PROVIDING FOR AN AMENDMENT IN THE RATES FOR RESIDENTIAL WASTEWATER SERVICE (SCHEDULE SR); AMENDING THE MOBILE HOME PARK WASTEWATER SERVICE (SCHEDULE SMH); AMENDING THE COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (SCHEDULE SC); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB- METERS) (SCHEDULE SCD); AMENDING THE COMMERCIAL /INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS) (SCHEDULE SCS); AMENDING THE SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (SCHEDULE SCH); AMENDING THE EQUIPMENT SERVICES FACILITIES AND RESTAURANT & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (SCHEDULE SEE); AMENDING THE METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (SCHEDULE SM); AMENDING THE SALE OF TREATED WASTEWATER EFFLUENT (SCHEDULE SGE);AMENDINGTHEWHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION OR SUBDIVISION (SCHEDULE SSC); AMENDING THE WASTEWATER TAP AND MANHOLE FEES (SCHEDULE ST); AMENDINGTHE ON-SITE SEWAGE FACILITY PERMIT FEES(SCHEDULE OSSF);ADDING THE COLLECTION AND TRANSPORATION SERVICES PERMIT (SCHEDULE SWP); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WASTEWATER RATE SCHEDULES SR Residential Wastewater Service 3 SMH Mobile Home Park Wastewater Service 6 SC Commercial and Industrial Wastewater Service 9 SCD Commercial/Industrial Wastewater Service Which Measures With 13 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing SCS Commercial/Industrial Wastewater Service Which Measures With 15 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SCH Septage & Chemical Toilet Disposal at the Pecan Creek Water 17 Reclamation Plant Septage Transfer Station 1 EXHIBIT 8 SEE Equipment Services Facilities and Restaurants & Food 18 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 21 SGE Sale of Treated Wastewater Effluent 23 SSC Wholesale Wastewater Treatment Service for a 25 Governmental Agency, Division or Subdivision CWM DYNO Dirt Products 27 GBL Grass, Brush, and Leaves29 ST Wastewater Tap and Manhole Fees 30 STE Treated Effluent Wastewater Tap Fees 31 OSSF On-Site Sewage Facility Permit Fees 32 SWP Collection and Transportation Services Permit 33 SD Storm Drainage Fees 339 Special Facilities Rider 3541 Special Conditions Rider 3541 2 EXHIBIT 8 SCHEDULE SR RESIDENTIAL WASTEWATER SERVICE (Effective 10/01/112) APPLICATION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton, Texas water service. Not applicable for sub-billing or other utility billing by service user in any event. (SR) MONTHLY RATES - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $8.309.00/bill (2) Volume Charge $3.203.50/1,000 gallons effluent (SRO) MONTHLY RATES – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $9.5510.35/bill (2) Volume Charge $3.704.05/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of 6,500 gallons. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 3 EXHIBIT 8 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6,500 Gallons x 98% Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SRNI/SRNO) MONTHLY RATES - WITHOUT CITY OF DENTON WATER SERVICE SRNISRNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $8.309.00/bill $9.5510.35/bill (2) Volume Charge $3.203.50/1,000 gals $3.704.05/1,000 gals The customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater. VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons 1,000 Wastewater volumes will be capped at a maximum of 18,000 gallons/bill. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 4 EXHIBIT 8 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 5 EXHIBIT 8 SCHEDULE SMH MOBILE HOME PARK WASTEWATER SERVICE (Effective 10/01/112) APPLICATION Applicable for mobile home parks that are master water metered to provide residential wastewater service. Wastewater service is billed based on the Customer’s winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. (SMH) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.6023.55/bill (2) Volume Charge $3.203.50/1,000 gallons effluent (SMHO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $24.0027.10/bill (2) Volume Charge $3.704.05/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater Volume Charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge 6 EXHIBIT 8 VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Established Billable Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SMNI/SMNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SMNISMNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $21.6023.55/bill $24.0027.10/bill (2) Volume Charge $3.203.50/1,000 gals $3.704.05/1,000 gals The Customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater per mobile home VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 7 EXHIBIT 8 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 8 EXHIBIT 8 SCHEDULE SC COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (Effective 10/01/112) REGULAR COMMERCIAL APPLICATION Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. (SC) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $21.6023.55/bill (2) Volume Charge $4.154.50/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. Plus PRETREATMENT/PROGRAM CHARGES (As Applicable) (SCA) (A) Categorical Customer $400.00/bill (SCB) (B) Non-categorical Customer $ 50.00/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (A) Sampling charge (each) $60.00 (B) Analysis charge (per test) $ Actual cost per test SCO MONTHLY RATE () – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $24.0027.10/bill (2) Volume Charge $ 4.755.20/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. MINIMUM BILLING Facility Charge 9 EXHIBIT 8 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS (SCNI/SCNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SCNISCNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $21.6023.55/bill $24.0027.10/bill (2) Volume Charge $4.154.50/1,000 gals $ 4.755.20/1,000 gals The minimum apartment Volume Charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. MINIMUM BILLING (1) Facility Charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility Charge plus other commercial user estimated monthly wastewater volume. 10 EXHIBIT 8 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume Rate per 1,000 gallons 1,000 Plus PRETREATMENT/PROGRAM CHARGES (As applicable) (1) Categorical Customer $400/bill (2) Non-categorical Customer $50/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 11 EXHIBIT 8 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 12 EXHIBIT 8 SCHEDULE SCD COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER FOR WASTEWATER BILLING (Effective 10/01/112) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD sub-metered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility ChargeBilling Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $46.1547.55 3" Meter $96.60102.40 4" Meter $178.45189.10 6" Meter $222.90253.60 8" Meter $259.30333.50 10" Meter $311.75445.50 (2) Volume Charge $4.154.50/1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be provided subject to the Special Facilities Rider. 13 EXHIBIT 8 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vu x.00834([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume .98 Rate per 1,000 gallons 1,000 14 EXHIBIT 8 SCHEDULE SCS COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER EXCLUDED FROM WASTEWATER BILLING (Effective 10/01/112) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer’s processes, not returned to the wastewater system, and are therefore excluded from the customer’s wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $46.1547.55 3" Meter $96.60102.40 4" Meter $178.45189.10 6" Meter $222.90253.60 8" Meter $259.30333.50 10" Meter $311.75445.50 (2)Volume Charge – None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume sub metered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 15 EXHIBIT 8 WASTEWATER SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE EXCLUSION The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, in other words, removed, from the master meter water volume prior to the wastewater billing volume calculation. 16 EXHIBIT 8 SCHEDULE SCH SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (Effective 10/01/112) APPLICATION Applicable to all users of the Pecan Creek Water Reclamation Plant Septage Transfer Station. The user must sign the “Agreement for Disposal of Liquid Waste” and comply with the following requirements: 1.Section 26-191 of the City of Denton Code 2.Provide to the City: signed “Application for Permit”, “Agreement for Disposal of Liquid Waste” documents, and provide copy of current TCEQ Registration Certificate, current Insurance Certificate for each vehicle, and current Manager of Operations Driver’s License. 3.Comply with the “Liquid Waste Hauler – Vehicle Inspection Audit” requirements RATE (1) Facility Charge $5.005.45/bill (2) Volume Charge $32.2035.10/1,000 gallons (3) Permit Fee each vehicle $300.00/per fiscal year MINIMUM BILLING Facility Charge PAYMENT Permit fee is due in full before first disposal at Pecan Creek Water Reclamation Plant Septage Transfer Station. Fee is prorated at $25 per month for current month and each of the remaining months in fiscal year. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. VOLUME CHARGE Billing for the septage volume contained in the septage hauling tank, shall be based on the full tank volume only. 17 EXHIBIT 8 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 10/01/112) APPLICATION Applicable to facilities which perform washing, cleaning or servicing of automobiles, trucks, buses or similar equipment and are categorized by North American Industry Classification System (NAICS) numbers: (811111, 811112, 811113, 811118, 811122, 811121, 811192, 811198, 447110, 447190) and /or similar code classifications. Applicable to all restaurants and food service establishments that prepare and serve food directly to customers and are categorized by NAICS numbers: (722110, 722211, 722212, 722213, 722410, 722310, 722320) and/or similar code classifications. (SEE) MONTHLY RATE (1) Facility Charge $21.6023.55/bill (2) Volume Charge $5.706.20/1,000 gallons effluent Billing based on eighty (85%) percent of monthly water consumption. Plus PRETREATMENT / PROGRAM CHARGES (As Applicable) (SEA) (A) Categorical $400/bill (SEB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING/ANALYSIS CHARGES (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test “SEE” RATE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the sanitary sewer. The exemption for the SEE class shall be determined by the City of Denton Environmental Health Services Food Inspection Division. 18 EXHIBIT 8 (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/l of BOD and 600 TSS as determined by the monitoring performed in Section 2(b). MINIMUM BILLING Facility Charge WASTEWATER SURCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-500] B + [Su-600] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 500 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 600 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 19 EXHIBIT 8 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 20 EXHIBIT 8 SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (Effective 10/01/112) APPLICATION Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. SMISMO MONTHLY RATE Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $266.75290.80/bill $306.80334.40/bill (2) Volume Charge $4.154.50/1,000 gals $ 4.755.20/1,000 gals Plus (3) Pretreatment/Program Charge (As Applicable) (SMA) (A) Categorical $400/bill (SMB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test WASTEWATER SURCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 21 EXHIBIT 8 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. .00834 is the conversion B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. MINIMUM BILLING Facility Charge, plus the appropriate Pretreatment/Program Charge, if applicable PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 22 EXHIBIT 8 SCHEDULE SGE SALE OF TREATED WASTEWATER EFFLUENT (Effective 10/01/112) APPLICATION Applicable for sales of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODUCT AVAILABILITY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHLY RATES (1) Facility Charge Per Bill 3/4“Meter $ 21.95 1” Meter $ 26.25 1-1/2” Meter $ 31.10 2” Meter $40.1541.35 3” Meter $84.0089.05 4” Meter $155.15164.45 6” Meter $193.85220.50 8” Meter $225.45290.00 10” Meter $271.10387.40 (2) Volume Charge $1.35/1,000 gallons MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. 23 EXHIBIT 8 VOLUME CHARGE Billing for the wastewater volume shall be based on the effluent volume calculated during the billing period. Formula: Effluent volume Rate per 1,000 gallons 1,000 24 EXHIBIT 8 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION (Effective 10/01/112) APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a wastewater collection system and contracts with the City of Denton for wastewater treatment service. MONTHLY RATES (1) Facility Charge $209.75/bill (2) Pretreatment/Program Charge (As Applicable) (A) Categorical $400.00/bill (B) Non-categorical $50.00/bill (3) Volume Charge $2.35/1,000 gallons Billing shall be based on one hundred (100%) percent of actual gallons measured. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling Charge (each) $60.00 (2) Analysis Charge (per test) Actual cost per test MINIMUM BILLING Facility Charge. WHOLESALE SURCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 25 EXHIBIT 8 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 26 EXHIBIT 8 SCHEDULE CWM DYNO DIRT PRODUCTS (Effective 10/01/112) APPLICATION Applicable to any and all customers, whether residential, commercial, or wholesale, which elect to acquire the City of Denton’s Dyno Dirt products for their use. The City of Denton reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. RATES Dyno Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyno Soil (Top Soil Blend) $30.00 /Cubic Yard (2) Dyno Dirt $25.00 /Cubic Yard (3) Dyno Lite $30.00/Cubic Yard (B) Wood Mulch (1) Dyno Landscape Mulch $27.50/Cubic Yard (2) Dyno Deco Colored Mulch $30.00/Cubic Yard (3) Dyno Double Grind $17.50/Cubic Yard Purchases for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discount, purchases greater than 100 cubic yards will receive a 40% discount. A contractor’s rate will be given to companies or persons who provide a current and valid resale certificate for inspection. The contractor’s rate includes a 30% discount on any purchase of from 1 to 99 cubic yards at any one time of any Dyno Product of the City of Denton. (C) City of Denton departments will receive a 40 % discount on all purchases of Dyno Dirt products. (D) Asphalt Millings $10.00/Cubic Yard PRODUCT AVAILABILITY The City of Denton produces Dyno Dirt products throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. 27 EXHIBIT 8 LOCATION All Dyno Dirt products may be purchased from the City of Denton at the following location: Location Address Compost Sales Bldg Water Reclamation Plant 1100 Mayhill Road, Denton, Texas WHOLESALE PURCHASES All Dyno Dirt products purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is requested. 28 EXHIBIT 8 SCHEDULE GBL GRASS/BRUSH/LEAVES (Effective 10/01/112) APPLICATION Applicable to all City of Denton residents who submit for deposit at the landfill grass clippings, brush, and/or leaves, who shall pay the following rates: GRASS/BRUSH/LEAVES: Product Characteristics Charge 1. Uncontaminated bagged or un-bagged $20.00/ton grass, brush, or leaves in less than twelve foot (12’) lengths. 2. Uncontaminated bagged or un-bagged $30.00/ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Contaminated grass, brush, or leaves of any length: $41.00/ton 4. Whole trees and stumps $50.00/ton MINIMUM CHARGE $17.50 per load Professional landscapers, tree trimmers, and yard maintenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer’s location. Grass, brush, and leaves shall not be assessed the City of Denton solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not land filled. 29 EXHIBIT 8 SCHEDULE ST WASTEWATER TAP AND MANHOLE FEES (Effective 10/01/112) APPLICATION This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WITH CLEANOUT Size of Tap Paved Street Unpaved Street 4 inch $2,000.00 2,200.00$1,410.001,425.00 6 inch $2,400.002,600.00$1,570.00 8 inch $2,220.002,700.00$1,730.00 10 inch $2,380.002,800.00$1,865.00 MANHOLE BREAKOUT FEE 6” – 12” Line $165.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap or manhole for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 30 EXHIBIT 8 SCHEDULE STE TREATED EFFLUENT WASTEWATER TAP FEES (Effective 10/01/112) APPLICATION This schedule applies to the installation, removal, or relocation of treated effluent wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: REUSE WASTEWATER LINE TAPS Size of Tap Paved Street Unpaved Street 4 inch $2,705.00 $1,625.00 6 inch $2,920.00 $1,895.00 8 inch $3,895.00 $2,815.00 12 inch $4,865.00 $3,730.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 31 EXHIBIT 8 SCHEDULE OSSF ON-SITE SEWAGE FACILTY PERMIT FEES (Effective 10/01/112) APPLICATION This schedule applies to the new construction of aerobic treatment systems, new construction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Construction of aerobic treatment systems $410 Reinspection Fee of aerobic treatment systems $200 New Construction of non-aerobic treatment systems $210 Reinspection Fee of non-aerobic treatment systems $100 Repair or Alteration fees (All types of OSSF’s) $50 32 EXHIBIT 8 SCHEDULE SWP COLLECTION AND TRANSPORTATION SERVICES PERMIT (Effective 10/01/12) Any person, entity, or business engaged in the collection and transport of waste, recyclables, or other materials as classified within this rate schedule, and operating within the City of Denton must possess a current permit issued from the City prior to providing collection and transportation services. Any private container located within the City of Denton for use in waste and recyclables collection services is required to be permitted. Permits for collection and transportation services are required for, but are not limited to, the following wastes and recyclables classifications: Municipal Solid Waste Special Waste Medical Waste Hazardous Waste Restaurant Oil and Grease Grease & Grit Trap Waste Commercial and Industrial Recyclable Materials – containerized and baled Residential Recyclable Materials Construction and Demolition (C&D) materials, recyclables, reuseables, and discarded C&D materials Waste and recyclable collection service providers operating in newly annexed areas, or contract service providers for the city Refuse or recyclables that the City does not collect and transport. The person shall apply for a permit from the city, and shall pay the required application fees at the time of permit application. All permits are non-transferable and are granted as non-exclusive service permits. Granting permits will be at the discretion of the City to meet the needs of the community. The permit applicant must pay the required fees, and meet all permit requirements prior to the issuance of a permit. Applicants with a Texas Commission of Environmental Quality (TCEQ) poor compliance history may not be permitted. All non-City of Denton container owners (roll-off containers, self contained compactors) are required to annually pay the per cubic yard container fee to the City of Denton for each container located within Denton’s city limits. Applicants will qualify to be permitted as ‘Small Operators’ if they have four or fewer service locations within the City of Denton, and operate with an organizational fleet of two vehicles or less, including trailers, of which each vehicle does not have a Gross Vehicle Weight Rating (GVWR) of more than 14,000 pounds. Granting of Permit As a condition of granting a permit, the person or entity receiving such permit (permittee) agrees to execute and comply with all requirements of the service agreement, carry specific types and amounts of insurance, submit reports, and timely pay the necessary fees. Following the granting of a permit, permit stickers shall be issued by the City and shall be placed by the permittee on all vehicles operating within the city limits of Denton and upon all containers placed within the City limits of Denton. Collection and transportation vehicles operating in Denton, and containers set 33 EXHIBIT 8 in Denton are required to display a current and valid calendar year permit decal at all times. If decals are lost by the permittee, and are not visible on their vehicles or containers, then the vehicles and/or containers must be re-permitted by the permittee, and all appropriate fees paid, prior to the vehicles or containers being placed in service within Denton’s city limits. The City of Denton is not responsible for lost decals. stst Permits are issued annually, beginning December 1, and are effective from January 1 or the st date of issuance, whichever is later, through December 31 of the same calendar year. The permit application process should be initiated and fees should be paid as early as possible during the last quarter of each calendar year for the upcoming calendar year so that adequate time is st available for review and processing of the application. Submittal of applications by December 1 st will eliminate the possibility of permits being issued after January 1. City staff, after reviewing the permit application and agreement, and after conducting any necessary research, may issue the permit, issue the permit with conditions, or deny the issuance of the permit. The City will establish the number of permits to be issued in each materials category. Exclusions Individuals living within the City limits of Denton, and hauling personal materials, wastes, or recyclables from their primary living residence are exempt from this requirement. Any person, who transports applicable materials three or fewer times per year, shall register with the City on the forms provided for that purpose. No annual service fees are required, but registration and permitting through the City is required. Fees 34 EXHIBIT 8 35 EXHIBIT 8 Small Operators Collection and Transportation Services Permit Fees Non City of Denton Service Providers SMALL OPERATORS - Special Waste, Madical Waste, Hazardous Waste, Restaurant Oil Paid Annually$200.00 Application Fee Service FeePer Vehicle$400.00 Container Fee Per Cubic Yard, per container (if applicable)Paid Annually$4.00 Revenue Fee Gross Revenue within City of DentonPaid Quarterly5% Right-of-Way Fee Per Cubic Yard, per Container, per Month (if applicable)Paid Monthly$4.00 Service providers desiring to provide services in more than one service category are required to complete permit documentation and pay the applicable fees for each service category they desire to provide within Denton’s City limits. All fees paid are nonrefundable. Application, service, and container fees are payable at the time of application submittal. Right- of-way usage fees are due and payable prior to setting a container in the right-of-way. Service and container fees are non-transferable between vehicles and containers, and are unit specific. Service fees based on a percentage of gross revenues from the collection, disposal, treatment, processing and transportation services provided within Denton are due quarterly and require payment to the City within twenty (20) calendar days following the end of each calendar quarter. Container fees apply to each container placed by the permitee within the City limits of Denton, and non-City owned containers serviced by the City, but do not apply to City of Denton owned containers. Containers are defined as any refuse containment equipment, which can be lifted and emptied using a special vehicle designed for that use, i.e. which are not emptied manually. Container fees are established for each cubic yard of container capacity, per container, as listed within the Fees section. All containers require a container permit fee regardless if the container is or is not placed on the ground. Permitting and fees are applicable and due for all businesses hauling baled recyclables generated from businesses located within Denton’s City limits. The quarterly calculation of a percentage of revenue, and of materials sales, and of services provided requires that the calculation be provided, with complete financial detail, to the City along with the service fee payment to the City. This written financial disclosure shall provide a detailed explanation of how all calculated service fees were determined, and shall be provided to the City either quarterly or monthly, at each required service fee payment period. If the full payment is not received by the due date (20th day of the month following the end of the reporting quarter) a penalty of 10% of the amount due will be charged, with an additional 1% charge due, for late payments beyond thirty (30) days, for each thirty (30) day period the balance 36 EXHIBIT 8 due is not received by the City of Denton. Permittees currently permitted, and choosing not to reapply for and make payment for a new st collection and transportation services permit by December 31 , for the upcoming calendar year st beginning January 1 will be assessed an additional $500 fee upon permitting or may not be st granted a permit by the City of Denton. If all permit fees are not paid prior to December 31, all unpermitted containers will be removed from their service provider locations beginning January st 1 by the City of Denton. Collection of these containers by the service provider requires that the time and materials charges incurred by City staff to relocate these containers must be reimbursed to the City by the service provider, prior to the City’s release of these containers. QuarterPayment Received by the City t h January - MarchApril 20 t h April - JuneJuly 20 t h July - SeptemberOctober 20 t h October - DecemberJanuary 20 Miscellaneous Violations / ‘No Operations’ Declaration A business which has not been permitted by the City to operate within the City limits of Denton; or has been suspended by the City from operating within the City limits of Denton, Texas shall be charged a sum of up to $500.00 per day by the City, for each day of violation of this ordinance, if the provider violates the ‘No Operations’ requirement prior to receipt of a City of Denton permit, or during any suspension of a permit period. Each day of illegal operations during a ‘No Operations’ period is considered a separate violation and the service provider is subject to being charged a sum of up to $500.00 for each day of violation. Following the receipt of a ‘No Operations’ declaration and prior to a service provider being reinstated to legally operate within the City limits of Denton, the service provider must meet with the City staff to update their application and agreement and make payment of all monies owed to the City. If a service provider operates a vehicle within Denton’s City limits which has not been permitted, or uses a container which has not been permitted, or operates any piece of equipment with an expired permit, or performs some other permit violation, or does not make payment of the appropriate fees in a timely manner, the city will issue a ‘No Operations’ declaration to the service provider, and assess all applicable permit violation fees. Once a service provider has been issued a ’No Operations’ declaration from the City, all services to be provided within Denton’s City limits are required to cease. Non-permitted containers may be collected by the City and stored until collection, storage, and permitting fees associated with each container are paid to the City of Denton. Following a meeting with the City staff, and the payment of all monies owed the City, the status of the permit will be determined. Revocation of Services & Non-Renewal of Permits If the City finds any requirement of the permit to have not been met, or violated, or observes service providers operating within Denton’s City limits without current permits, the City may institute a ‘No Operations’ declaration, and additionally revoke or not renew the service providers permit, thereby requiring the service provider to cease all operations within the City limits of Denton. 37 EXHIBIT 8 Reclassification of Recyclables Recyclables containing ten (10%) percent or more contamination, as determined by the City, will be considered refuse, and its collection may not be provided by service providers permitted under this ordinance. This material shall be reclassified as refuse and will be collected by the City of Denton. The General Manager, Solid Waste Services or his designee, will make the final determination on whether stored recyclables contain excessive contamination, which at the City’s determination, may cause the reclassification of these materials to municipal solid waste (MSW), thereby negating the ability of a service provider to transport this material within Denton’s City limits under their operating permit pursuant to this ordinance. The City of Denton has the authority to inspect the contents of any container located within Denton’s City limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not exceed 10%. Terms and Renewal All collection and transportation permits shall be valid for one calendar year from the date of issuance, and for not more than one calendar year from the date of issuance. 38 EXHIBIT 8 SCHEDULE SD STORM DRAINAGE FEES (Effective 10/01/112) APPLICATION Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amount of impervious surface cover that results in water runoff into the City of Denton drainage system. (SDR) MONTHLY FEE – RESIDENTIAL The residential fee is applicable to all single-family through fourplex real properties located within the incorporated limits of the City of Denton, Texas, for which impervious surfaces can be individually identified. The residential fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: Fee Block Per Bill 0 – 600 Square Feet $ 0.50 601 – 1,000 Square Feet $ 1.00 1,001 – 2,000 Square Feet $ 3.35 2,001 – 3,000 Square Feet $ 5.45 3,001 – 4,000 Square Feet $ 7.60 4,001 – 5,000 Square Feet $ 9.75 5,001 – 6,000 Square Feet $12.00 Over 6,000 Square Feet $15.50 (SDN) MONTHLY FEE – NON-RESIDENTIAL The non-residential fee is applicable to all other real property owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The non-residential fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per bill EXEMPTIONS The following real property owned and located within the incorporated limits of the City of Denton, Texas shall be exempt from imposition of the residential fee or the non-residential fee: 1. Real property with proper construction and maintenance of a wholly sufficient and privately-owned drainage system, not draining into the City of Denton drainage system, upon the real property’s inspection and certification by the City; or 39 EXHIBIT 8 2. Real property held and maintained in its natural state, until such time that the real property is developed, and all of the public infrastructure constructed thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a structure has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residential fees or the non-residential fees are applicable. 40 EXHIBIT 8 SPECIAL FACILITIES RIDER (Effective 10/01/112) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this rider. (2) The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/112) If a special condition or circumstance exists not otherwise provided for by the wastewater rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 41 EXHIBIT 8 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on and after October 1, 20112, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the ______ day of ________________________, 20112. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _____________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _____________________________ 42 EXHIBIT EXHIBIT 8 8 ORDINANCE NO. 2012- _______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NO. 2011-161. AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; PROVIDING FOR THE AMENDMENT TO THE RESIDENTIAL REFUSE AND RECYCLING COLLECTION SERVICES RATES (SCHEDULE SWR); AMENDING THE MULTI-FAMILY HOUSEHOLD ITEM COLLECTION SERVICES RATE (SCHEDULE SWMFS); AMENDMENT TO THE COMMERCIAL SOLID WASTE REFUSE COLLECTION SERVICES AND DUMPSTER RATES (SCHEDULE SWC); AMENDMENT TO THE COMMERCIAL RECYCLING SERVICES RATE (SCHEDULE SWCR); AMENDMENT TO THE SANITARY LANDFILL SERVICES RATES REGARDING WHOLESALE MUNICIPAL SOLID WAST RATE PER TON (SCHEDULE SWL); PROVIDING FOR A REPEALER; PROVIDING SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. SECTION 1. The charges for Solid Waste collection services as authorized by Section 24- 42(b) of Article II, Section 24-66 of Article III and Section 24of Article I of Chapter 24; and by Section 32-90 of Article IV of Chapter 32 of the Code of Ordinances of the City of Denton, Texas, are hereby established as follows: SOLID WASTE RATE SCHEDULES PAGE RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES ............................. 3 Rates and Fees .............................................................. 3 Services ......................................................................... 4 Miscellaneous ............................................................... 5 MULTI-FAMILY REFUSE AND RECYCLING SERVICES ................................................. 6 Rates and Fees .............................................................. 6 Services ......................................................................... 7 Miscellaneous ............................................................... 7 COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES ............................ 8 Rates and Fees Î Commercial Refuse ............................. Rates and Fees Î Commercial Recycling .......................... Commercial Service Fees ........................................... 11 Shared Container Fees Î Square District ........................ Miscellaneous ............................................................. 14 1 EXHIBIT 8 CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES................................................................................................................................... 16 Rates and Fees ............................................................ 16 Miscellaneous ............................................................. 16 LANDFILL SERVICES ............................................................................................................. 17 Rates and Fees ............................................................ 17 Services ....................................................................... 18 Miscellaneous ............................................................. 19 2 EXHIBIT 8 SCHEDULE SWR AND SWRR RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/12) Residential accounts are defined as: Each living unit of a residential lot, each unit of a duplex or triplex, and any single unit or living space in which a person or single family resides. All refuse or recycling must be placed within a bag and within the appropriate cart with the lid fully closed, and placed at the curb by 7:00 a.m. on the scheduled collection day. Carts are only collected one time per week. Residential accounts will be bille Rates and Fees 3 EXHIBIT 8 Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. Minimum Billing/Base Rate Service A minimum monthly billing rate is applicable for an unoccupied residential unit and shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of six months per calendar year. Excess Refuse Solid Waste collection personnel will reload the refuse cart with additional bagged refuse materials adjacent to the refuse cart. Yard Waste There is no additional charge for the collection of up to 6 cubic yards (CYÓs) of yard waste per week (i.e. bagged grass clippings, bagged leaves, brush, and tree limbs which are cut in less than 4Ó lengths and stacked). If the volume of yard waste exceeds 6 CYÓs but does not exceed CYÓs, the total volume will be collected, and a fee per CY will be charged for each CY in excess of 6 CYÓs. If the total volume exceeds 11 CYÓs the resident shal request collection. Large Household Items Solid Waste collection personnel will collect up to four large household items per year, for no additional charge. Large household items are residential househo with household use, such as furniture and selected appliances. Appliances Appliances manufactured to contain PCBÓs or refrigerants will be charged for the collection and disposal of each appliance and/or the associated materials. Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged for the collection, processing, recycling and disposal of these devices. Residential C&D Residential C&D waste includes but is not limited to lumber, brick, fencing, and drywall, not exceeding 8Ó in length. If the customer has over (8) cubic yards of C&D waste for collection at 4 EXHIBIT 8 any one pick-up, the customer is required to have a City refuse container of adequate size to contain the waste, and maintain a collection service frequency of at least once per month. Household Hazardous Waste Residential household hazardous wastes are unwanted chemicals that should not be placed in your refuse cart (pesticides, herbicides, cleaning chemicals, paints, oils, etc.). These wastes should be kept in their original container and set on the curb, approximately four feet from the refuse and recycling cart. Redelivery Fee Residential customers will be charged a re-delivery fee to reset each cart pulled for nonpayment. Miscellaneous When initiating new service, a deposit may be charged. Residential customers may be provided commercial containers and service at the published commercial rates. Temporary containers may be placed on residential property for up to thirty 30) days, with no more than three 30-day periods per year. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Other residential services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special and administrative services provided. 5 EXHIBIT 8 SCHEDULE MFR AND SCHEDULE SWMFS MULTI-FAMILY REFUSE AND RECYCLING SERVICES (Effective 10/01/12) A multi-family unit includes each separate living unit of a four-plex, apartment, condominium, or other multi-family living facility with four or more residenc Multi-family facilities are provided refuse collection services, and recycling collection services if requested. In addition to those services, multi-family residents receive Household Chemical Collections and Recycling Services and have the option to subscribe to either of the two Large Household Item Collection services offered. Rates and Fees Household Chemical Collections Multi-family household chemicals are unwanted chemicals that should not be placed in your refuse container (pesticides, cleaning chemicals, paints, oils, etc.). Residents shall contact Customer Service for their collection, and the materials should be placed at an agreed upon location. Annual Container Service A furniture container will be placed at a designated location and serviced weekly on the regular collection day. This requires a twelve (12) month service subscription. On-Demand Container Service 6 EXHIBIT 8 A furniture container will be placed at a designated location and Customer Service must be notified one day in advance for the container to be serviced. If the furniture container is contaminated with refuse, construction materials, or contains other non-furniture materials, the standard refuse service fees will apply. Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD or plasma displays will be charged for the collection, processing, recycling, and disposal of these devices. Appliances Appliances for multi-family residents are not collected through an appliance collection route, and may only be placed in the facility dumpster if they were not manufactured to contain PCBÓs or refrigerants. If they were manufactured to contain PCBÓs or refrigerants they should be transported by the resident to the landfill. Special Collection Special collection services may be provided to multi-family facilities upon request. Miscellaneous Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. 7 EXHIBIT 8 SCHEDULE SWC AND SCHEDULE SWCR COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/12) Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of Denton. Only materials mutually agreed upon by the commercial recycling customer and the City are acceptable in the provided recycling container. The owner/manager of the commercial entity is the party responsible for notifying his/her personnel of proper recycling procedures. New commercial business development and redevelopment will be provided solid waste commercial refuse and recycling services, as outlined in the Denton Development Code and Site Plan Criteria Manual. Refuse and recyclables will be collected in city provided or city approved containers only. All businesses utilizing non-city owned containers shall comply with the requirements of the Collection and Transportation Rate Schedule (SWP) and shall be permitted per the requirements of the schedule. Should any other fees or charges be established by any other authorized government entity, those fees will be added to the monthly rates stated within this ordinance in order that the City may fully recover the additional governmental fees. Commercial accounts will be billed monthly or semimonthly. Rates and Fees Î Commercial Refuse 8 EXHIBIT 8 9 EXHIBIT 8 On demand municipal solid waste (MSW) collections, excluding construction, deconstruction, and demolition materials, must be collected a minimum of once pe Texas Municipal Solid Waste handling requirements. Commercial Recycling The contamination rate must not exceed 10% of the hauled load to qualify as recyclable materials. On demand recyclables equal to or greater than 10% contamination must be hauled a minimum of once per week. Containers with loads exceeding 10% co MSW and will be hauled and billed by the City of Denton as MSW. The City of Denton has the authority to inspect the contents of any container located within DentonÓs city limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not Rates and Fees Î Commercial Recycling 10 EXHIBIT 8 Commercial Refuse and Recycling Cart Service In those areas where commercial cart collection is available, sm generating less than one cubic yard of refuse per week, may contract for once per week cart service. All waste must be contained in the cart, and the cart s 7:00 a.m. on the scheduled collection day. A maximum of four carts are available, two refuse and two recycling. The cart(s) will only be serviced one time per week. Service above this level will require the customer to subscribe to front-load container service. Commercial Service Fees 11 EXHIBIT 8 Delivery / Relocation / Inaccessible Fee A fee will be charged for the delivery of a container, the relocation of a container, or if the container is inaccessible at the time of service. Minimum Charge A monthly minimum charge will be charged to all non-cart commercial solid waste customers. Wait Time Fee Customers that request the driver wait so that they can provide an additional service to the customer will be charged an on-site waiting time fee charged in fifteen (15) minute increments. Same-Day Service Fee The Solid Waste Department Customer Service personnel must receive on-demand service requests prior to 11:00 a.m. on the day service is desired in order to provide same day collection service. Lock Installation Fee For the Solid Waste DepartmentÓs installation or removal of container locks. Deposit Fee For containers, a commercial solid waste service deposit is required. Payments to the City that are not received by the due date will result in the customerÓs d next billing cycle. The deposit increase will be based upon the customerÓs billing history. To continue receiving service, the customer is required to remit the previous service balance owed and the increased deposit charges. The General Manager, Solid Waste Services, or designee, may waive the deposit based upon the review of the customerÓs credit history and other criteria. No Parking Zone Fees for Containers in Right-of-Way No Parking Zone fees provide for an identifiable and painted area in the street which is designated as a vehicular No Parking Zone, which provides for road clearance, allowing the CityÓs trucks to always have accessibility to the customerÓs container. The No Parking Zone is designed to prevent the container from being blocked by another vehicle, and therefore 12 EXHIBIT 8 eliminates additional service fees from being charged to the cus truck driver to return to the customerÓs address and empty the container once a vehicle blocking a container has moved. Customers may secure a dedicated No Parking Zone for front load and side load containers by completing an application with the City Traffic Engineer. Container Cleaning Fees Commercial container cleaning services are available for front-load or side-load containers. The service is a one-year service subscription that is elected by the customer. The one-year service agreement is on a annual basis, not a fiscal year basis. Only empty containers will be transported and cleaned, and are projected to be off the customerÓs site for no longer than four hours. Shared commercial container customers that desire to have their containers cleaned shall determine the monthly amount to be billed to each customer, which when totaled shall equal the monthly rates for scheduled services or the on-demand service rate. Shared Commercial Containers Î Square District Shared container collection services which include both refuse and recyclables collections at each business site within the Square District of the City of DentonÓs Downtown Implementation Plan area will be provided for the charges listed below. Shared Container Fees Î Square District Property owners within the Square District may have individual bss containers on their property if they choose not to use shared container service. Shared Commercial Containers (Outside of Square District) Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Division staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. Shared accounts are subject to other applicable service fees. 13 EXHIBIT 8 Miscellaneous All new commercial business development and redevelopment will b commercial refuse and recycling services, as outlined in the Denton Development Code and the Site Plan Criteria Manual. Refuse will be collected in City approved or City provided containers only. All non-City owned containers shall have a container permit affixed to the outside of each container in a location that is clearly visible when viewed by Solid Waste Department employees, from the front of the collection site. Commercial refuse collection services are provided through a volume-based rate system. The City reserves the right to reject recycling loads containing any materials other than the contracted material. If a load is rejected as recyclables by the City, it will be handled as municipal solid waste (MSW) and incur both the rejected recycling charges as well as associated commercial solid waste disposal rates. Other services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special services and administrative services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Special Waste DentonÓs acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the special waste requested from the customer for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the General Manager, Solid Waste, for the collection and disposal of special waste, will be established based on the type of special waste, and the requirements for collection and disposal of the waste. Service Requirements Equipment Uses - All equipment furnished by the City, shall at all times be considered the property of the City. Customer shall keep the equipment free and clear of all levies, liens and encumbrances. Customer shall not modify the equipment or use it set forth herein. The City shall repair, as necessary, the equipment(s) furnished. The Customer, however, agrees to be solely responsible for any damages to or loss of equipment resulting from any negligent acts or misuse by the Customer or Customer's agents or employees, or invitees. The City may temporarily replace the size and/or the type of equipment contracted for with one 14 EXHIBIT 8 or more pieces of equipment(s) of equivalent capacity for the purposes of repairing the equipment. Customer agrees that the equipment is in the Customer's care, custody, and control at all times. Equipment Location - Customer shall provide an accessible location for the Equipment that is safe and provides adequate and legal clearance. This means that for a radius of at least five (5) feet around the Equipment there will be no objects or obstructions other than enclosures that meet City-required clearance standards. No container shall be set closer than two (2) feet to any structure (exception: a bollard in an enclosure). Additionally, the path that the CityÓs Service truck must take on CustomerÓs premises, must provide a minimum clearance on each side of the CityÓs truck of at least two (2) feet. Overhead clearance of twenty-five (25) feet is required fo roll-off containers, and twenty (20) feet for front and side-load containers. Failure to maintain or provide these minimum clearances will result in the CityÓs refusal to pay any and all damage claims and/or to service the container. Customer will be solely responsible for providing access to the Equipment at all times, and agrees that Customer shall not be relieved of payment of any charges for Services contracted for, but not provided by the City, because of CustomerÓs failure to maintain continuous prescribed access to the Equipment. Outside of normal wear and tear, the maintenance required to place the Container at another location will be charged to the Customer. Weight Limits - Loaded side-load containers shall not exceed a total weight of one ton. Loaded front-load containers shall not exceed a total weight of two tons. Any container evaluated by the CityÓs collection manager to contain excess weight shall be emptied by the customer to the level determined by the collection manager prior to being serviced. Tickets and/or fines for overweight roll-off loads, and the CityÓs administrative costs, are the responsibility of the customer, and shall be paid by the customer. Indemnification and Hold Harmless - Customer agrees that the City will not be liable to Customer. Customer shall defend, indemnify and hold the City harmless from any and all claims made by CustomerÓs lessor or CustomerÓs lessee at the Service location, and any and all claims made by any other person having an interest in the property situated at the Service location, for any loss, damage or deterioration of the pavement, surface or subsurface materials or facilities at the Service location by reason of use thereof by the CityÓs trucks that are used to Service the Equipment. Customer agrees to release, indemnify, defend and hold harmless the City of Denton, Texas from and against any and all claims for damages to enclosures or screening devices, from solid waste Equipment which do not have an access opening of at least twelve (12) feet inside diameter (ID) for front-load Equipment; and fifteen (15) feet (ID) for roll-off Equipment. Customer further agrees to release, indemnify, defend and hold harmless the City of Denton, Texas, from and against any and all claims of damages related to the furnishing of commercial solid waste service performed by the City. 15 EXHIBIT 8 SCHEDULE SWC&D CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES (Effective 10/01/12) For construction, deconstruction, demolition, and renovation sites where the customer requests the City of Denton provide roll-off collection services for the recycling and reuse of the salvaged materials. Rates and Fees Rates are established for roll-off collection, transportation, and processing services of the listed materials and any other mutually agreed upon materials for which recyclable and reuse markets exist. Uncontaminated C&D materials will be accepted on a per ton or a cubic yardage basis. Rates charged will be based on the quantity and quality of materials to be delivered. Miscellaneous The City reserves the right to reject C&D loads containing any materials other than the agreed upon material. If a load is rejected, it will be handled as municipal solid waste (MSW) and incur commercial solid waste disposal rates. Other commercial services may be provided at fees established by the Solid Waste Division, and approved by the General Manager, Solid Waste Services. The fees established will recoup the costs and administration of the special services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stat that the City shall recover those additional costs from the customer. 16 EXHIBIT 8 SCHEDULE SWL LANDFILL SERVICES (Effective 10/1/12) Rates and Fees 17 EXHIBIT 8 Services Customers with greater than 3,000 monthly tons may receive different rate structures for varied waste categories or guaranteed delivery volumes. Unsecured Loads In compliance with State regulations, solid waste loads that are not adequately secured to prevent the material from spilling will be charged an Unsecured Load Fee Appliances Appliances manufactured to contain PCBÓs or refrigerants for which the customer provides no certified removal documentation of the PCBÓs or refrigerants will be charged for the disposal of each appliance and/or the associated materials. 18 EXHIBIT 8 Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged per device for disposal of these devices. Sand, Select Soil, Rock and Crushed Concrete Sales The Solid Waste Department may sell excess sand, select soil, and rock to the public. Note: Customers wishing to purchase large volumes of soil, greater than 50 CYÓs, and load their own vehicles, will be required to provide proof of insurance meeting the cityÓs minimum liability insurance coverage. Large volume sales and the actual rates charged will require pre-approval by the General Manager, Solid Waste. The soils must be excess to the needs of the Solid Waste Department. Pricing for special soils will be established by the General Manager, Solid Waste at a rate to fully recover costs. Special Waste and Other Waste Streams The acceptance by the landfill of and the disposal of special waste or other waste is conditional. Acceptance of special waste or other waste is subject to Federal and State laws and regulations. The City of Denton has the right to refuse to accept or dispose of special waste or other waste at its discretion. Charges for the disposal of special waste or oth on the type, characteristics, and amounts of waste, as well as the requirements for disposal of the waste. Such charges shall be established by the General Manager, Solid Waste, or designee. Miscellaneous The current State of Texas landfill surcharge of (30 TAC 330.602) $1.25 per ton is a pass- through charge collected on behalf of the State of Texas. Any additional assessment or fees established by a governmental entity will be added to the disposal rates and assessed on all waste delivered to the landfill. Other landfill services that are not otherwise listed under this Schedule SWL may be provided by the City at fees established by the General Manager, Solid Waste. Such fees shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the non-listed landfill services. Used Container Sales The Solid Waste Department will sell used metal containers and used surplus carts from time to time, as they become available for sale. 19 EXHIBIT 8 SECTION 2. The General Manager of Solid Waste of the City of Denton is hereby authorized to deny the use of the City of Denton landfill to any customer w regarding the origin of, or the composition of the solid waste delivered for disposal to the landfill; or for safety violations committed by a customer within the landfill; or for non- compliance with verbal and written instructions provided to the customer by Solid Waste Department personnel at the landfill; or for nonpayment of delinquent funds owed by the customer to the City of Denton, Texas; or for any violation of t within the landfill; or for any non-compliance by the customer with the Texas Commission on Environmental Quality regulations or policies; or for any non-compliance by the customer with the City of DentonÓs Code of Ordinances or rules; or for any violation of the written landfill rules by the customer as posted by the Solid Waste Department at the entrances to the landfill, from time to time. SECTION 3. It is in the public interest that the provisions of Sections 26-3, 26-4, 26-5, 26- 7, 26-8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. SECTION 4. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6. This ordinance shall become effective, charged, and applied to all solid waste services rendered by the City of Denton on and after October 1, 2012; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED and APPROVED this ________ day of ____________, 2012. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ 20 EXHIBIT 8 APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________ ______ 21 EXHIBIT 8 ORDINANCE NO. 20112 - ________ AN ORDINANCE AMENDING THE SCHEDULE OF ENGINEERING FEES CONTAINED IN ORDINANCE NO. 20101-233159; PROVIDING AN AMENDMENT TO THE RIGHT-OF- WAY INSPECTION FEEAND THE RIGHT-OF-WAYPUBLIC WORKS OVERTIME INSPECTION FEE; PROVIDING A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas incurs administrative expenses in providing inspection services for public improvements which are constructed by developers, and should be properly borne as fees by developers; and WHEREAS, when contractors or utilities perform work within City of Denton right-of- way, the City incurs right-of-way inspection and administrative expenses, which should be properly borne as fees by the contractor or utility requesting services; and WHEREAS, when commercial establishments require loading zones, or parking lots, or commercial establishments file variances or appeals to the Traffic Safety Commission regarding the proper traffic flow and safety, the City of Denton thereby incurs inspection and administrative expenses, which should be borne as fees to the commercial establishment seeking the City action; and WHEREAS, the City Council finds that such fees as are recited herein bear a reasonable relationship to the actual administrative costs and expenses incurred by the City of Denton to conduct such inspections, and that the following ordinance should be enacted; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. That a public works inspection fee is hereby established in an amount equal to 3.5% of the cost to construct public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City’s authorization to proceed with construction of the public improvements. The cost to construct the public improvements is the cost set forth in the public improvements agreement by and between the City and the developer. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the “Overtime Fee”) shall be paid to the city based upon the following hourly rate: $105.00135.00 per hour as of and after the effective date of this ordinance. A minimum Overtime Fee shall be deposited with the City based upon four hours, at least 24 hours before the overtime inspection is scheduled to start; except that the weekend overtime deposit may be received on or before 12:00 p.m. of the Friday immediately precedingproceeding the weekend overtime period. If there are more than four overtime inspection hours, developer 1 EXHIBIT 8 will be billed for such additional hours, which shall be paid no later than fifteen (15) days after the date of the billing, and prior to incurring additional overtime inspections. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. SECTION 3. A right-of-way inspection fee is hereby established in an amount equal to $100.00 per hour, with a minimum of one hour for each inspection conducted. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an overtime fee (the “Overtime Fee”) shall be paid to the city at a rate of $135.00 per hour. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking construction or repairs with the City right-of-way no later than fifteen (15) days after the date of the invoice. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. Failure to pay the fee in full may result in the City terminating the contractor’s or utility’s right to work within the City right-of-way. SECTION 4. A parking lot permit inspection fee is to be paid to the City of Denton, and is hereby established in an amount equal the following: Parking lot permit fees 1 – 50 spaces $540.00 51 – 100 spaces $720.00 101 – 250 spaces $900.00 251 – 500 spaces $1,080.00 This parking lot permit inspection fee must be paid to the City by the developer or contractor of such facility prior to the City’s authorization to proceed with construction of the parking lot facilities. SECTION 5. A fee for appeals or for variances to the City of Denton Traffic Safety Commission is to be paid by the Applicant to the City of Denton, and is as follows: Fees for appeals or variances to Traffic Safety Commission Fee per appeal or variance $300.00 SECTION 6: A loading zone permit fee is to be paid by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year 2 EXHIBIT 8 That any renewal of a loading zone permit shall require the payment by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year SECTION 7: All ordinances or parts of ordinances in force when the provisions of this ordinance becomes effective which are inconsistent or in conflict with the terms or provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 8: If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 9: The Schedule of Rates herein adopted shall be effective, charged, and applied to all engineering services occurring on and after October 1, 20112; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _________________, 20112. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _________________________________ 3 EXHIBIT 8 ORDINANCE NO. 20112-________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY UTILITIES CUSTOMERS CONTAINED IN ORDINANCE NO. 20101-232160;AMENDING ACCOUNT AND RECONNECTION CHARGES; AMENDING METER CHARGES; AMENDING MISCELLANEOUS FEES, CHARGES AND DEPOSITS; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Denton customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Meter Connection Charge 3 Meter Reconnection Process Charge 3 Unauthorized Usage Penalty 4 New Customer Application Charge 4 B. METER CHARGES Meter Reading 5 Meter Testing 5 Meter Tampering and/or Damage Charge 5 Meter Inaccessibility Charge 6 C. MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge 7 Service Deposits 7 Waiver of Service Deposits 8 1 EXHIBIT 8 Late Payment Charge Due on Delinquent Balances 8 Interest Charge on Past Due Account Balance 9 Interest Earned on Contract Retainage 9 2 EXHIBIT 8 ACCOUNT CONNECTION AND RECONNECTION PROCESS CHARGES (Effective 10/01/112) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service on a first time basis where no permanent service previously existed and where a new account number is established or, when a customer requests service at an address which has existing or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE First Service Requested $23.00 First Service Requested, guaranteed $61.00 same day service First Service Requested, after $61.00 business hours METER RECONNECTION PROCESS CHARGE APPLICATION Applicable when a customer’s account is processed for disconnection due to nonpayment. CHARGE Delinquent Service Fee $ 46.00 (When service is disconnected at the electric meter socket or the water meter) Delinquent Service Fee $168.00 (When service is disconnected at the electric transformer or the water meter has been removed) Reconnect Charge, guaranteed same day service (In addition to delinquent service fees) $ 61.00 3 EXHIBIT 8 Reconnect Charge, guaranteed same day service (When service is disconnected at the transformer or the water meter has been removed) $231.00 When more than one trip, within twenty-four (24) hours, is required to restore a customer’s service, a Return Trip Charge, in addition to the Reconnection Charge, shall be applied for each additional trip. Return Trip Charge during business hours $23.00 Return Trip Charge after business hours $61.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails to request connection of services within 24 hours of occupancy in a new service location. CHARGE Unauthorized Usage Penalty $30.00 NEW CUSTOMER APPLICATION FEE APPLICATION Applicable when a customer requests new service or is added to an existing account and provides Social Security or Tax ID information to verify identity and credit history. CHARGE New ResidentialCustomer Application Charge - per person $ 3.00 New Commercial Customer Application Charge $ 16.00 4 EXHIBIT 8 METER CHARGES (Effective 10/01/112) METER READING APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $46.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test $62.00/KWH Electric Meter $93.00/KW/KWH Electric Meter $93.00 Water Meter ACCURACY STANDARDS A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $310.00 minimum per electric connection per system Per Event $200.00 minimum per water connection per system 5 EXHIBIT 8 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $46.00 6 EXHIBIT 8 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 10/01/112) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer’s or taxpayer’s check, or money order, or bank draft for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker’s bank and returned to the City of Denton unpaid. CHARGE Per Check $27.00 SERVICE DEPOSITS APPLICATION Applicable when a residential customer requests utility service in the City of Denton service area and does not have twelve (12) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of Denton as security for payment. CHARGE Residential Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Commercial Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and 7 EXHIBIT 8 April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer’s account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer’s account. WAIVER OF SERVICE DEPOSITS APPLICATION Applicable when an Applicant is a citizen of the City of Denton, Texas and who also is a “victim of family violence,” applies for utility service in the City of Denton, Texas. To be a qualified as a “victim of family violence” an Applicant must secure and provide a certification letter, provided by one of the certifying entities to the Utilities Customer Service Department. If a proper, dated and completed certification letter is presented by or on behalf of the Applicant to the Utilities Customer Service Department, and its issuance is verified by the Utilities Customer Service Department, then the requirement of a utility deposit shall be waived for that Applicant. This provision is applicable solely to “victims of family violence” as defined by Texas Family Code, §71.004, as amended. No other relief from the City’s utility rates, or deposits, or charges, or fees is hereby provided to “victims of family violence.” LATE PAYMENT CHARGE DUE ON DELINQUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $20.00 late payment charge 8 EXHIBIT 8 INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month’s billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month’s billing statement. CHARGE1% / month on all past due charges and account balances unpaid at the time of the current month’s billing calculation.** **Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX. REV. CIV. STAT. ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of interest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. 9 EXHIBIT 8 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. This ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 20112; and a copy of said fees and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _______________________, 20112. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 10 EXHIBIT9 EXHIBIT 9 7/27/2012 CITY MANAGERÔS FY 2012-13 PROPOSED BUDGET Presented to the City Council on August 2, 2012 Overview and Purpose 2 Review key elements of Strategic Plan. Discuss key assumptions in the General Fund. Discuss key assumptions in the General Fund. Present General Fund Supplemental Packages recommended for approval by City Manager. Review FY 2012-13 proposed five year financial forecast for the General Fund. Discuss 5 year CIP plan and future GO/CO bond issuances. Discuss budget recommendations for Utility funds. Review other funds and information. Outline next steps. 1 EXHIBIT 9 7/27/2012 Strategic Considerations 3 Strategic Considerations Review Strategic Plan. Discuss Key Focus Areas Strategic Plan ÏA Review 4 City Council approved Strategic Plan on April 11, 2011. Reviewed and affirmed plan in January 2012. Intent of Strategic Plan is to: Focus and enhance budget process. Ensure policy and administrative decision-making is based upon a proactive approach. Link organizational direction to the CityÔs established vision, mission, and values. The FY 2012-13 Cit ManagerÔs Proposed Bdget has yu The FY 201213 Cit ManagerÔs Proposed Bdget has been crafted to achieve the goals and objectives outlined in the approved Strategic Plan. While progress has been made on many goals, some objectives may take years to achieve. 2 EXHIBIT 9 7/27/2012 Strategic Plan -Key Focus Areas 5 1.ORGANIZATIONAL EXCELLENCE 1ORGANIZATIONAL EXCELLENCE 2.PUBLIC INFRASTRUCTURE SUSTAINABLE ECONOMIC DEVELOPMENT & 3. ENVIRONMENTAL STEWARDSHIP 4.SAFE, LIVABLE, &FAMILY FRIENDLY COMMUNITY 5.PARTNERSHIPS& REGIONAL LEADERSHIP General Fund 6 Revenue Characteristics Sales Tax Appraised Values and Property Taxes Other Key Revenues Other Key Revenues 3 EXHIBIT 9 7/27/2012 General Fund Revenue Components FY 2012-13 Proposed Budget Information 7 Ad Valorem Taxes Sales Taxes Franchise Fees Transfers Return on Investment Service Fees Fines and Fees Other 0%5%10%15%20%25%30%35%40% NOTE: Approximately 85% of revenue in top five categories. FY 2011-12 Monthly Changes in Sales Tax Collections 8 FY 2010-11FY 2011-12 ActualActualVariance% Variance October$1,724,569$1,977,647$253,07814.67% November$1,677,082$1,868,669$191,58711.42% December$2,531,345$2,666,634$135,2895.34% January$1,657,288$1,917,675$260,38715.71% February$1,675,491$1,839,133$163,6429.77% March$2,265,083$2,663,452$398,36917.59% April$1,712,714$1,927,371$214,65712.53% May$1,676,289$2,048,301$372,01222.19% Total$14,919,861$16,908,882$1,989,02113.33% Estimate for FY 2011-12 is $25.7 million. $2.2 million (9.4%) above the budget of $23.4 million, and $2.8 million (12.2%) above FY 2011 actual of $22.9 million. 4 EXHIBIT 9 7/27/2012 Sales Tax Collection History 9 Fiscal YearSales Tax Collections% Change FY 2007-08$21,984,9363.89% FY 200708$21,984,9363.89% FY 2008-09$20,950,796(4.70%) FY 2009-10$21,015,1740.31% FY 2010-11$22,871,2818.83% FY 2011-12 (estimated)$25,655,44412.2% Five Year Average Increase4.11% g Due to performance outlined above, staff recommends that the long-term sales tax growth rate be increased from 2% to 3%. Year-to-year performance will likely vary substantially. Sales Tax Projections 10 To provide a clear pictureof the cost and benefits of sales tax agreements, incentive payments are included in expenditure budget. g,pypg Estimate to FY 2010-11FY 2011-12FY 2011-12FY 2012-13 Proposed Actual BudgetEstimateProposedVariance Revenue: SalesTax Revenue$22,871,281$23,446,578$25,655,444$26,466,107$810,663 Expenditures: Economic Development Incentives($549810),($963676),($849260),($1372855),,($523595), Incentives($549810)($963676)($849260)($1372855)($523595) Net Sales Tax Revenue$22,321,471$22,482,902$24,806,184$25,093,252$287,068* * 3% increase in ÑbaseÒ sales tax revenue is forecasted for FY 2 5 EXHIBIT 9 7/27/2012 Sales Tax Collections (In millions) 11 $30.0 $26.47 $25.66 $25.0 $22.87 $21.98 $21.16 $21.02 $20.95 $20.0 $15.0 $10.0 $5.0 $0.0 FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013 NOTE: Sales tax figures are ÑgrossÒ collections that exclude the effect of economic development ince agreements. FY 2012 and FY 2013 are estimated figures. Appraised Values (In Billions) 12 Tax Year20082009201020112012 May Prelim. Value$7.227$7.042$6.648$7.029$7.272 FinalCertifiedValue$6.291$6.328$6.230$6.412$6.716 Variance($0.936)($0.714)($0.418)($0.617)($0.556) Variance %(12.95%)(10.14%)(6.29%)(8.78%)(7.65%) Certified appraised value is $6.716 Billion for 2012. 4.75% increase compared to 2011 Value of $6.412 Billion. p 3% increase had previously been forecasted in June. Compared to 2011 Certified Values: 2012 Certified value increased by $304 million. $133 million related to new construction. $171 million increase related to existing property appraisals. 6 EXHIBIT 9 7/27/2012 Appraised Value Distribution by TaxYear Prior to Exemptions 13 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 201020112012 Single Family ResidentialReal/Personal Property -Commercial and Industrial Multi-Family ResidentialReal Property -Acreage and Vacant Lots Other Appraised Values (contÔd) 14 In 2009, the City Council endorsed a plan to increase the oer 65 propert ta eemption in vyxx increase the oer 65 propert ta eemption in $5,000 increments: Goal was to achieve a $50,000 exemption level by FY 2013-14. The Proposed Budget includes a $5,000 increase in the over 65 exemption level to $45000 for FY , the over 65 exemption level to $45000 for FY 2012-13. 7 EXHIBIT 9 7/27/2012 Downtown TIF 15 Downtown TIF was established in 2010 for the purpose of improving development in the Downtown area. pgp The 2010 base value was $79,356,854, and the 2012 value is $89,605,635 which results in a gain of $10,248,781 (12.9%) in value. Based on this increase in value, the TIF will receive $70,691 in property tax revenue for FY 2012-13. Fund balance at the end of FY 2012-13 is expected to be approximately $668,52. $66 No expenditures have been established at this time by the TIF Board. Appraised Value History (In Billions) 16 $8.0 $70. $70 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 20022003200420052006200720082009201020112012 8 EXHIBIT 9 7/27/2012 Property Tax Rate 17 City of Denton tax rate is comprised of two components: Operations and Maintenance ÏDeposited into General Fund. pp GO Debt Service ÏDeposited into GO Debt Service Fund. FY 2012-13 proposed total tax rate (per $100 of valuation) is $0.68975. No tax rate increase is proposed for FY 2012-13. Proposed tax rate (per $100) is shown below: AdoptedTaxRate Proposed FY 2011-12ChangesFY 2012-13 O&M(General Fund)$0.47088$0.00000$0.47088 GO Debt$0.21887$0.00000$0.21887 Variance$0.68975$0.00000$0.68975 Average Residential Property Taxes 18 In 2011, the Average Taxable Value for a Single Famil Home was $154378y,. Famil Home was $154378 Using FY 2011-12 tax rate, average Cityproperty taxes were $1,064.82. In 2012, the Average Taxable Value for a Single Family Home is $154,354. Ui sngproposedFY 2012-13 taxrate,averageCity UidFY 201213 Ci property taxes will be $1,064.65. 9 EXHIBIT 9 7/27/2012 Truth in Taxation Information 19 Texas Property Tax Code mandates the calculation and publication of effective and rollback rates. publication of effective and rollback rates Effective tax rateis the calculated rate that would generate the same amount of tax revenue as the previous year based on the new appraised values on existing property. Rollback tax rateis the highest rate the City can set before taxpayers may initiate a rollback petition (generally 8% hih l h i )gerevytanproryear. hih l h i ) If proposed tax rate exceeds effective rate, the following items will need to be considered by Council. Vote to consider a proposal for a tax increase on August 7 th. stth Public hearing on tax rate on August 21and August 28. Truth in Taxation (contÔd) 20 FY 2012-13 Effective Tax Rate is estimatedto be $0.68045 and the estimated Rollback Tax Rate is $0.73217. $ By August 5th ÏPublish effective and rollback tax rates in Dento Record Chronicle. Since proposed tax rate of $0.68975 exceeds Effective Tax Rate, a separate vote and hearing is required by Council. th August 7ÏVote to consider proposal for tax increase. stth August 21and August 28ÏPublic Hearing on proposed tax August 21 st and August 28 th Public Hearing on proposed tax increase. If Council elects to adopt effective rate, approximately $624,000 in property taxes will be lost. 10 EXHIBIT 9 7/27/2012 Other Key Revenues 21 General Fund Franchise Fees are proposed to decline by approximately $208K in FY 2013 compared to FY 2012. Primarily due to additional revenue transfer to Street Improvement Fund. Total Franchise Fees are expected to increase by approximately $0.7 million for all funds in FY 2013. Administrative Cost Transfers to the General Fund are proposed to increase by approximately $1.3 million (net) in FY 2012-13 due to a recent cost allocation plan study. Designed to recover General Fund costs associated with services provided to other funds (e.g. HR, Legal, Finance, CMO, etc.) Interest Income is expected to remain extremely low due to unusually low interest rates. Revenue equaled $744K in FY 2008-09, but only $225K is expected in FY 2012-13. General Fund Expenditures 22 General Fund Expenditures Expenditure Characteristics Cost Containment Strategy Compensation Plan Expenditure Enhancements unaance Fd Bl Fd Bl ProposedFY 2012-13 General Fund Five Year Forecast 11 EXHIBIT 9 7/27/2012 General Fund Expenditure Components FY 2012-13 Proposed Budget 23 Transfers Fixed Assets 6.4% 0.8% Operations Operations 12.8% Miscellaneous 1.1% Insurance 1.1% Maintenance & Repair 2.6% Materials & Supplies 2.2% Personal Services 73.0% General Fund Budget by Department FY 2012-13 Proposed Budget 24 Facilities ManagementLibraries Other 3%6% 7% Fin/HR/Legal/CMO 10%Parks and Recreation 11% Traffic and Transportation Operations 3% Municipal Court/Judge 2% Planning, Code Enforcement, and , Fire Building Inspection 24% 6% Economic Development 2% Police/Animal Services 26% 12 EXHIBIT 9 7/27/2012 Prior Reductions 25 In FY 2009-10, approximately $1.2 million in reductions were included in the adopted budget. FY 2010-11 Gl Fd bd ildd il $52 illi eneraunugetncueapproxmatey.mon FY 201011 Gl Fd bd ildd il $52 illi in reductions compared to initial forecasts. Key reductions included: Overtime reduced by 1/3 (10% for PD) -$0.4 million. Technology Services transfer reduced by $0.3 million. Training and Travel Budget reduced -$0.3 million. Efficiency Team (E-Team) initiatives implemented -$0.5 million. Transfer to Gas Well Fund eliminated -$0.5 million. Transfer of KDB program to Solid Waste -$03 million.. Transfer of KDB program to Solid Waste -$03 million Pay increase eliminated -$0.6 million. In FY 2011-12, the majority of these cost saving measures were retained. In the FY 2012-13 Proposed Budget, most of the prior reductions made in FY 2010-11 and FY 2009-10 are maintained. Vacancy Management Plan 26 Equivalent of 22 positions not funded in FY 2010-11. Approximately $1.45 million in savings. Approximately $1.45 million in savings. Equivalent of 14 positions not funded in FY 2011-12. Approximately $0.9 million in savings. While a specific group of vacant positions was initially targeted, purpose of the plan is to ÑmanageÒ to a total savings amount rather than a set of positions. As such, as position turnover and attrition rates have dictated, vacant positions have been filled or left vacant according to vacant positions have been filled or left vacant according to need. Existing employees have been required to Ñdo more with less.Ò Vacancy management program is proposed again for FY 2012-13, and savings of approximately $0.9 million is expected. 13 EXHIBIT 9 7/27/2012 Compensation 27 FY 2010-11 did notinclude any merit increases for employees . employees 2% merit increases were forecasted for each subsequent year. FY 2011-12 included a 2% merit increase for employees. FY 2011 and FY 2012 budgets also included g normal Step increases for Police/Fire Civil Service employees. Public Safety positions are subject to Meet and Confer agreement conditions. Employee Turnover by Fiscal Year Excludes Temp/Seasonal Employees 28 14.00% 1200%. 1200% 10.00% 8.00% 6.00% 400%. 400% 2.00% 0.00% FY 11/12 FY11/12 FY 01/02FY 02/03FY 03/04FY 04/05FY 05/06FY 06/07FY 07/08FY 08/09 (as of Q3)(proj) Turnover 10.28%9.32%10.25%13.03%12.30%10.40%9.09%5.14%6.80%7.30%7.00%9.30% 14 EXHIBIT 9 7/27/2012 Compensation (contÔd) 29 For FY 2012-13, a 3% merit increase for non-civil service employees (3% pay adjustment for civil service employees (3% pay adjustment for civil service employees) is planned. Designed to provide an appropriate compensation plan to attract and retain qualified employees. 3% base pay increase is included for each subsequent year of the five year financial forecast. Large percentage of employees below midpoint f of their salary range (represents market average). As a result, equity pay adjustments for employees below their market average also recommended if they have satisfactory performance. Texas Municipal Retirement System (TMRS) 30 In 2008, the City Council discussed the TMRS pension plan and the need to change from the Unit Credit to Projected Unit Cdlhdreit actuaria cost meto. Cdlhd While a number of options were discussed, the City Council elected to maintain benefits and Ñphase-inÒ to a higher contribution rate over a period of up to 8 years. Passed ordinance in July 2008 to memorialize intent and increase city contribution rate. At that time, the city was expected to begin paying the Ñfull ra i FY 2015n-16. i FY 201516 Due to changes related to SB 350 passed in 2011, and better than expected financial performance, the Ñfull rateÒ is now proposed for FY 2012-13. Early implementation will improve funding ratio and reduce futur actuarial rates. 15 EXHIBIT 9 7/27/2012 FiremenÔs Relief and Retirement Fund 31 In addition to TMRS, the City maintains a FiremenÔs Relief and Retirement Fnd (FRRF) for ciil serice uvv Relief and Retirement Fnd (FRRF) for ciil serice employees in the Fire Department. While not subject to the same actuarial changes as TMRS, the City Council elected to contribute the same rate to the FRRF in 2008. Accordingly, in FY 2012-13, the contribution to the FRRF has been increased to match the ÑfullÒ TMRS rate mentioned previously. GF Supplemental Packages Recommended 32 $9.9 million and 43.8 FTEs in supplemental packages (eg new fnding reqests) were ..uu packages (eg new fnding reqests) were submitted to the City Manager for consideration in the General Fund. The following items represent the funding that has been recommended by the City Manager. A l l f h ll k competeistotesuppementapacagerequests A l l f h ll k and City Manager Recommendations is included in your presentation materials. 16 EXHIBIT 9 7/27/2012 City Manager Recommended Enhancements by Service Category 33 Public Safety $1,251,480 Transportation $1,166,053 Neighborhood Services $671,745 Administrative & Community Services $338,836 0%5%10%15%20%25%30%35%40% % of Total Enhancements Received GF Supplemental Packages Public Safety 34 Fire Packages Recommended: FTEsGeneralFund OtherFunds FTEsGeneralFund OtherFunds Medic Unit5.0$540,983$235,578 Fire InspectorÏCommercial Plans1.0$68,962$30,020 Admin. Assistant0.5$15,060$0 ARFFVehicle Equipment0.0$0$37,625 Total6.5$625,005$303,223 Police Packages Recommended: Police Packages Recommended: FTEsGeneralFundOther Funds Ammunition0.0$25,000$0 Police Lieutenant1.0$134,843$0 $44,044$0 PropertyTechnician1.0 Total2.0$203,887$0 17 EXHIBIT 9 7/27/2012 GF Supplemental Packages Public Safety 35 Animal Control Packages Recommended: FTEsGleneraFdunOth Fderuns FTEGlFdOth Fd Animal Shelter Manager1.0$64,707$0 Animal ServicesOfficer1.0$45,970$0 Total2.0$110,677$0 MunicipalCourt Packages Recommended: FTEsGeneralFundOther Funds ScofflawProgram0.0$8,688$0 GF Supplemental Packages Transportation 36 Traffic Packages Recommended: FTEsGleneraFdunOth Fderuns FTEGlFdOth Fd New Traffic Signals: Brinker and Colorado0.0$0$164,077 Brinker and Spencer0.0$0$273,730 State Schooland Unicorn Lake0.0$0$95,014 Allegra Vista and Dallas0.0$0$273,232 Country Club andHickory Creek00.$0$130000, Country Club andHickory Creek00$0$130000 CountryClub and Ryan0.0$0$130,000 SupplementalBike Program Funding(In addition to $100,000 in existingfunds)*0.0$100,000$0 Total0.0$100,000$1,066,053 * Item submitted by City Council members. 18 EXHIBIT 9 7/27/2012 GF Supplemental Packages Neighborhood Services 37 Library Packages Recommended: FTEsGleneraFd unOtherFd uns FTEGlFd OthFd TechnologyLibrarian1.0$54,670$0 Building Inspection Packages Recommended: FTEsGeneralFundOther Funds Commercial Plans Examiner1.0$62,469$0 Residential Inspector1.0$49,973$25,000 Total2.0$112,442$25,000 GF Supplemental Packages Neighborhood Services 38 Planning Packages Recommended: FTEsGleneraFd unOtherFd uns FTEGlFd OthFd Assistant Planner1.0$53,634$0 Internship Program1.0$45,000$0 Planning Technician1.0$47,667$0 NeighborhoodIncentive Grant Program (In addition to $34,000 in existingfunds)*0.0$50,000$0 Total3.0$196,301$0 * Item submitted by City Council members. 19 EXHIBIT 9 7/27/2012 GF Supplemental Packages Neighborhood Services 39 Parks Packages Recommended: FTEsGeneralFund OtherFunds Water Works Park Lifeguards and NatatoriumSwim Instructors0.95$0$0 Customer Service Rep *1.0$0$52,698 Point of Sale System0.0$25,957$0 RecreationSpecialist ÏSr. Ctr.1.0$50,155$0 AdditionalMowing0.0$75,000$0 Civic Center Lifeguard0.32$6,275$0 TreeSpade Contract Services0.0$24,500$28,000 RecreationCoordinator *0.5$0$20,747 Total3.77$181,887$101,445 * Funded in the Recreation Fund in FY 2012, and the positions are again recommended in the Recreation Fund in FY 2013. GF Supplemental Packages Administrative and Community Services 40 Facilities Management Packages Recommended: FTEsGleneraFd unOtherFd uns FTEGlFd OthFd FacilitiesAssistant1.0$29,349$0 BuildingNeeds ÏPublic Health and Safety0.0$0$191,000 Total1.0$29,349$191,000 Public Communications Packages Recommended: FTEsGeneralFund OtherFunds Website Upgrades0.0$9,000$0 20 EXHIBIT 9 7/27/2012 GF Supplemental Packages Administrative and Community Services 41 Economic Development Packages Recommended: FTEsGeneralFund OtherFunds DowntownGrant Reinvestment Program (In addition to $50,000 in existingfunds)*0.0$50,000$0 Finance Packages Recommended: FTEsGeneralFund OtherFunds Sr. Financial Analyst1.0$59,487$0 * Item submitted by City Council members. Other General Fund Expenditures 42 In addition to the packages above, $396,329 is recommended to be funded from FY 2011-12 resources. $85,000 for an engineering study of the Lake Forest Dam as requi State of Texas. $76,802 for vehicles and equipment related to the Gas Well Revie Code Enforcement divisions. $70,330 to remodel the Municipal Court front counter area to pro access and increase security. $59000 for a salary survey and compensation analysis and $14400 ,, $59000 for a salary survey and compensation analysis and $14400 for a laserficheimaging system update. $38,354 for equipment related to the Aircraft Rescue and Firefig vehicle. $30,000 for a hazardous materials contract. $22,443 for Ñno parkingÒ markings in neighborhoods near TWU and 21 EXHIBIT 9 7/27/2012 Summary of Assumptions 43 FY 13FY 14FY 15FY 16FY17 AppraisedValue 475%.3%4%4%4% AppraisedValue 475%3%4%4%4% Growth Sales Tax Growth3%3%3%3%3% Compensation *3%3%3%3%3% Tax Rate$0.68975$0.68975$0.69975$0.69975$0.69975 * Eligible Step increases are also included for Police/Fire in t proposed budget. Fund Balance Reserves General Fund 44 Expected to remain abovetarget level over next several years. several years. 09/30/201009/30/2011 09/30/201209/30/2013 ActualActualEstimateProposed EndingFund Balance$21,526,779$24,424,003$25,747,978$25,083,084 % of Expenditures23.6%27.1%29.1%26.6% Reserve Target% 12-15%20%20%20% * Target revised in FY 2010-11 in response to conversations wit The revised target was approved as part of the FY 2010-11 budget 22 EXHIBIT 9 7/27/2012 ProposedFY 2012-13 GF Long Term Plan (In Millions) 45 FY 11-12 EstimatedFY 12-13FY 13-14FY 14-15FY 15-16FY 16-17 Beg. FB$24.42$25.75$25.09$23.33$21.41$20.27 $$$$$$ Revenues88.9093.6696.7799.68103.21106.40 $0.01 Tax Increase 0.720.750.78 Total Revenues$88.90$93.66$96.77$100.40$103.96$107.18 Expenditures$87.57$94.32$97.53$100.57$102.60$105.82 NewOne Time0.250.250.250.25 New Recurring0.751.502.253.00 Total $87.57$94.32$98.53$102.32$105.10$109.07 Expenditures N.I./(Loss)$1.33($0.66)($1.76)($1.92)($1.14)($1.89) EndingFund $25.75$25.09$23.33$21.41$20.27$18.38 Balance Effective FB %29.1%26.6%23.7%20.9%19.3%16.8% Street Improvement Fund 46 Street Improvement Fund Review Street Maintenance Funding Challenges Discuss FY 2012-13 Proposed Funding 23 EXHIBIT 9 7/27/2012 Street Maintenance Funding 47 Street maintenance issues: OCI i (li) f i h Ci f D ratngquatyostreetsntetyoenton OCI i (li) f i h Ci f D have deteriorated over the past several years. Current level of street maintenance funding is insufficient to maintain current OCI rating. Approximately $3.5 million is spent on maintenance activities (increased from $2.8 million in FY 2010-11), but at ) least $10.0 million (2009 dollars) is needed on an annual basis to prevent further decline. Enhanced capital (CIP) program is also required on an annual basis to maintain OCI rating. Street Improvement Fund 48 To address street maintenance issues, a standalone ÑStreet Improvement FundÒ was created in FY 2011- 12 to separately account for street maintenance p activities. Funding for Street Maintenance activities was increased by: Transferring increases in Franchise Fee revenue compared to FY 2010-11. Transferring interest cost savings from Utility Funds as a Transferring interest cost savings from Utility Funds as a result of the issuance of COs instead of Utility System Revenue Bonds. Estimated to be $0.27 million in FY 2012-13. Street Impact Fees may also be considered in the future as well. 24 EXHIBIT 9 7/27/2012 Planned Increases in Funding Street Maintenance 49 FY 2013FY 2014FY 2015FY 2016FY 2017 FY 2010-11 Budget$2,800,000$2,800,000$2,800,000$2,800,000$2,800, Bond Sale Savings265,251413,780639,309764,618853,364 FranchiseFee Growth *1,143,7651,732,6382,362,5823,342,2303,948,270 Annual Funding$4,207,016$4,946,418$5,801,891$6,906,848$7,601,634 * 100% of Franchise Fee growth over FY 2010-11. Including the funding above, the total Street Improvement Fund proposed budget will be approximately $7.2 million in FY 2012-13. It is also expected that voters will be asked to approve a $20.4 million bond program in November which is primarily focused on street reconstruction. GO Debt Service Fund 50 Review Proposed FY 2012-13 Debt Issuances. Planned future bond sales and potential issues. 25 EXHIBIT 9 7/27/2012 GO Debt Service Fund FY 2012-13 51 No tax rate increase for General Obligation (GO) Debt Service Fund is planned. Appraisal growth assmptions mirror those in General Fnduu. Appraisal growth assmptions mirror those in General Fnd 4.75% growth in FY 2012-13. 3% growth in FY 2013-14. 4% growth in FY 2014-15 and each subsequent year. Staff recommends issuing $11.2 million in Certificates of Obligation (COs) in FY 2012-13. $4.5 million in COs is proposed for vehicle replacements and facility improvements. p $2.6 million in COs are also planned to be issued for the Animal Adoption Center consistent with Council direction. $2.0 million in COs are proposed for property acquisitions at the Denton Airport. $1.1 million in COs are proposed for new traffic signals. $1.0 million in COs are also planned to complete the Public Safety Training Facility at City Hall East. GO Debt Service Fund FY 2012-13 and Beyond 52 $20.4 million GO Bond Program primarily for street reconstruction is proposed for FY 2012-13 (sold over 5 years). pp( With voter approval, expect to sell $4.0 million for bond program in FY 2012-13. $9.0 million in COs is also planned to be issued for the CityÔs required match on Bonnie Brae and Mayhill projects in FY 2013-14. Future size and timing of additionalGO bond election Future size and timing of additionalGO bond election will be dependent on economic factors, however, a $50 to $60 million 5 year program may be possiblein FY 2014-15 or FY 2015-16. 26 EXHIBIT 9 7/27/2012 Future Bond Program Projects 53 Next voter approved bond program is tentatively planned for FY 2014-15 or FY 2015-16. p This bond program timeline assumes no tax rate increase. More immediate needs have been identified which may require a tax increase. Fire Station 4 requires a substantial building modification ($150K) to store a new piece of apparatus. Stti 4 bilt i 1965 d tl h 3 t 4 aonwasunancurrenyouseso Stti 4 bilt i 1965 d tl h 3 t 4 firefighters with an engine. Other significant building issues have been identified at stations 2 and 3. Fire stations in this era were not designed for both male and female firefighters. Future Bond Program Projects 54 Fire Station 2 is in poor condition and was built in 1972 to accommodate 3 firefighters. g Currently houses 5 to 6 firefighters with an engine and an ambulance. Fire Station 3 is also in poor condition and was built in 1971. Currently houses 5 to 6 firefighters with an engine and an ambulance. As a result, an additional bond election maybe recommended in 2013 to rebuild or relocate three fire stations. Following slides demonstrate some known issues. 27 EXHIBIT 9 7/27/2012 Station 2 Kitchen and Dorm Area 55 Station 2 Bunker Gear Storage, Workout Facility, and Bathroom 56 28 EXHIBIT 9 7/27/2012 Station 3 Dorm Room Areas 57 Station 3 Dorm Room and Kitchen Areas 58 29 EXHIBIT 9 7/27/2012 Station 4 Bathroom and Laundry Facilities 59 Station 4 Rendering of Remodel Required for New Apparatus 60 30 EXHIBIT 9 7/27/2012 Station 7 Dorm Room and Kitchen Area 61 Fire Station Improvements 62 Fire Station location study is currently underway. Expect to receive results by end of summer or early fall. Expect to receive results by end of summer or early fall Based on outcome of study, stations may be recommended to be relocated. If so, property will need to be acquired. Unknown cost for property acquisition, design and construction of new station. If li ffii i b currentocatonsaresucent,statonscane If li ffii i b replaced for approximately $4.0 million each. As additional information is obtained, staff will brief the City Council and provide a recommendation on how to proceed. 31 EXHIBIT 9 7/27/2012 Other Major Funds 63 j Electric Fund Water Fund Wastewater Fund Solid Waste Fund Health Insurance Fund Other Funds Utility Funds An Overview 64 Public Utilities Board (PUB) recommended utility budgets to the City Council on June 25th. budgets to the City Council on June 25th. Major impacts on FY 2012-13 operating budget, CIP, and Five Year Financial Forecasts. Replacement of a larger percentage of aging infrastructure with revenue. Significantly larger 5 year CIP program than anticipated last fiscal year. last fiscal year. Proposed budgets are subject to the following risks that may affect financial performance. Inflation of Materials, Chemicals, and Fuel; Aging infrastructure; Water supply; Reserve targets; and Debt coverage ratios. 32 EXHIBIT 9 7/27/2012 Utility Funds An Overview (contÔd) 65 The following strategies and objectives have been developed to strengthen the financial integrity of each utility. Phase-in the replacement of aging infrastructure with current revenue funding and reduce reliance on debt financing. Reach and maintain sufficient reserve fund. Working Capital Ï30 days of average expenses for each utility (8 Rate Stabilization ÏWater (60 days or 16%); Electric/Wastewater (45 Days or 12%); Solid Waste (15 Days or 4%). Maintain Water and Wastewater impact fee reserve balances at MaaWaeadWasewaepaceeesevebaacesa $1 million for each utility. Maintain Water and Wastewater Development Plan Line reserve balances at $1 million per City Council resolution R91-008. Create a $1 million drainage reserve in the Wastewater Fund. Maintain debt coverage ratio of 1.25 or better for each utility. Electric Fund 66 No base rate increase for electric utility customers. Accelerated CIP program will have a significant impact on operat th fbl ft eoreseeaeuure. th fbl ft Discussed in more detail at a joint meeting with the City Counci Utilities Board in July. 11.5 new FTEs are recommended ($1.2 million in additional cost). 5.5 FTEs for operating programs. 6.0 FTEs for Capital Improvement Program activities. Major FY 2012-13 CIP Projects include: Transmission Lines -$35.0 million Transmission Substations -$20.3 million Feeder Extensions and Improvements -$8.9 million New Residential and Commercial Service -$3.1 million Automated Meter Reading -$3.0 million. Five-year CIP debt issuance will approach $190 million. FY 2011-12 five-year CIP debt issuance was estimated at $76 mill 33 EXHIBIT 9 7/27/2012 Water Fund 67 3.0 FTE increase -2 FTEs in Water Production and 1 FTE in Utility Administration. FTE in Utility Administration 9.5% rate increase for FY 2012-13 was originally contemplated. 8.0% rate increase is recommended by the PUB. Represents approximately $3.25 monthly increase to average residential customer. Major FY 2012-13 CIP Projects include: North South Water Main Phase 2 -$6.7 million Robson Elevated Storage tank -$5.5 million Highway 380 Utility Relocate Phase 1 & 2 -$4.9 million Water Five Year Financial Forecast 68 FY 11-12 EstimateFY 12-13FY 13-14FY 14-15FY 15-16FY16-17 B Fd Bleg.unaance$127.$135.$126.$124.$121.$125. B Fd Bl$127$135$126$124$121$125 Revenues$38.6$43.0$43.8$47.5$49.7$52.2 Total Resources$51.3$56.5$56.4$59.9$61.8$64.7 Operating Exp.$37.8$43.0$43.8$47.5$49.3$51.7 Use of Reserves$0.0$0.9$0.2$0.3$0.0$0.0 Total Expenditures$37.8$43.9$44.0$47.8$49.3$51.7 Net Income(Loss)$0.8($0.9)($0.2)($0.3)$0.4$0.5 W.C. Balance$3.0$3.5$3.5$3.8$4.0$4.1 R.S. Balance $10.5$9.1$8.9$8.3$8.5$8.9 Total Ending F.B.$13.5$12.6$12.4$12.1$12.5$13.0 W.C. % of Exp.8.0%8.0%8.0%8.0%8.1%8.0% R.S. % of Expenses27.7%20.7%20.2%17.4%17.2%17.2% Note: WC Balance Target is 30 Days Ï8% of Expenses and RS Balan 34 EXHIBIT 9 7/27/2012 Wastewater Fund 69 2.88 new FTEs (1 FTE in Water Reclamation, 1.5 FTEs in Industrial Pretreatment, and 0.38 FTEs in Watershed Industrial Pretreatment, and 0.38 FTEs in Watershed Protection). 12.0% rate increase for FY 2012-13 was originally contemplated. 9.0% rate increase is recommended by the PUB. Represents approximately $2.50 monthly increase to average residential customer. residential customer Major FY 2012-13 CIP Projects include: Pecan Creek Interceptor II, III & IV -$4.8 million State School Interceptor II -$2.3 million Co-digestion at PCWRP -$2.2 million Highway 380 Utility Relocate Phase 1 & 2 -$2.2 million Wastewater Five Year Financial Forecast 70 FY 11-12 EstimateFY 12-13FY 13-14FY 14-15FY 15-16FY16-17 Beg Fund Balance.$88.$94.$89.$84.$80.$82. Beg Fund Balance$88$94$89$84$80$82 Revenues$25.0$27.8$29.8$32.1$34.5$35.4 Total Resources$33.8$37.2$38.7$40.5$42.5$43.6 Operating Exp.$24.4$27.8$29.8$32.1$34.3$34.9 Use of Reserves$0.0$0.5$0.5$0.4$0.0$0.0 Total Expenditures$24.4$28.3$30.3$32.5$34.3$34.9 Net Income(Loss)$0.6($0.5)($0.5)($0.4)$0.2$0.5 W.C. Balance$2.0$2.3$2.4$2.6$2.8$2.8 W.C. Balance$2.0$2.3$2.4$2.6$2.8$2.8 R.S. Balance $6.4$5.6$5.0$4.4$4.4$4.9 Drainage Reserve$1.0$1.0$1.0$1.0$1.0$1.0 Total Ending F.B. $9.4$8.9$8.4$8.0$8.2$8.7 W.C. % of Exp.8.2%8.1%8.0%8.0%8.2%8.0% R.S. % of Expenses26.2%19.8%16.5%13.5%12.8%14.0% Note: WC Balance Target is 30 Days Ï8% of Expenses and RS Balan 35 EXHIBIT 9 7/27/2012 Solid Waste Fund 71 Curbside recycling services brought in-house in FY 2012. Net lower cost than private services. 5.0 new FTEs are proposed for FY 2012-13. 2 FTEs for Curbside Recycling program 1 FTE for Commercial and Multi-family Recycling Coordinator 1 FTE for Household Chemical Collections 0.5 FTEs (2 Temporary Positions) for Residential Yard Waste Collection 0.5 FTEs (2 Temporary Positions) for Construction and Demolition Processing. Ridil d Cil i d f FY esentaanommercaratencreasesareproposeor Ridil d Cil i d f FY 2012-13. Represents $0.85 monthly increase on standard cart refuse container. No recycling fee increases are proposed. Major FY 2012-13 CIP Projects include: Landfill Facility Expansion and Capital Costs -$4.4 million Vehicles -$1.8 million Solid Waste Five Year Financial Forecast 72 FY 11-12 EstimateFY 12-13FY 13-14FY 14-15FY 15-16FY16-17 B Fd Bleg.unaance$31.$31.$31.$30.$31.$31. B Fd Bl$31$31$31$30$31$31 Revenues$22.8$25.1$26.4$27.7$28.6$29.7 Total Resources$25.9$28.2$29.5$30.7$31.7$32.8 Operating Exp.$22.8$25.1$26.4$27.6$28.6$29.7 Use of Reserves$0.0$0.0$0.1$0.0$0.0$0.0 Total Expenditures$22.8$25.1$26.5$27.6$28.6$29.7 Net Income(Loss)$0.0$0.0($0.1)$0.1$0.0$0.0 W.C. Balance$1.8$2.0$2.1$2.2$2.3$2.4 R.S. Balance $1.3$1.1$0.9$0.9$0.8$0.7 Total Ending F.B.$3.1$3.1$3.0$3.1$3.1$3.1 W.C. % of Exp.8.0%8.0%8.0%8.0%8.0%8.0% R.S. % of Expenses5.7%4.4%3.4%3.3%2.8%2.4% Note: WC Balance Target is 30 Days Ï8% of Expenses and RS Balan 36 EXHIBIT 9 7/27/2012 Overall Monthly Rate Impact Average Residential Customers 73 FY 2012FY 2013Increase% Change Electric 1$119.86$123.76$3.903.3% Water$42.35$45.60$3.257.7% Wastewater$27.50$30.00$2.509.1% SWÏStandard Cart$19.25$20.10$0.854.4% SW-Recycle$5.15$5.15$0.000.0% Total$214.11$224.61$10.504.9% 1 FY 2013 includes an average Energy Cost Adjustment (ECA) rate of. FY 2013 includes an average Energy Cost Adjustment (ECA) rate of037 and FY 2012 includes an average ECA rate of $0.034. The base rate of $0.0582 is the sam Health Insurance Fund 74 $1.4 million budget amendment needed in FY 2011-12 due to: 2011-12 due to: Discovery of previously undiagnosed conditions from clinic Health Risk Assessments (HRAs). Significantly more claims over $25K than in prior year. Will discuss with Audit/Finance Committee on August th 7in greater detail. Currently evaluating employee/retiree rates and plan design. Will provide additional details in the near future. 6% increase in City contributions included in FY 2012-13 Proposed Budget. 37 EXHIBIT 9 7/27/2012 Parks Gas Well Fund 75 In the Parks Gas Well Fund, $800,000 in ependitres are proposed for the followingxu: ependitres are proposed for the following $500,000 for a property acquisition at North Lakes Park. $200,000 for construction at the golf driving range. $100,000 for adult soccer field construction. Other Funds 76 Hotel Occupancy Tax (HOT) Committee has proided recommendations for Torism and vu proided recommendations for Torism and Convention Fund (HOT Funds). $100K included for contingency purposes for potential expenses associated with planned convention center. Capital Improvement Program (CIP) budget and Grant funds budget also included. Grant funds budget also included 38 EXHIBIT 9 7/27/2012 Summary Information 77 Summary Information FTE Summary Budget Summary Next Steps City of Denton FTE Summary 78 FY 2012 EstimateFY 2013 ProposedVariance General Fund738.04756.8118.77 Electric Fund131.50143.0011.50 Water Fund158.00161.003.00 WastewaterFund92.3795.252.88 Solid Waste Fund105.50110.505.00 Airport Fund5.506.501.00 Street Improv. Fund27.0030.003.00 Tech. Services Fund27.0029.002.00 Tech. Services Fund27.0029.002.00 Materials Mgmt. Fund12.0013.001.00 FleetMgmt. Fund22.0022.000.00 Risk Retention6.006.000.00 Other29.2729.270.00 Total All Funds1,354.181,402.3348.15 39 EXHIBIT 9 7/27/2012 Total Expenditure Budget by Fund (in millions) 79 FY 2012BudgetFY 2013 ProposedVariance GeneralFund$88.5$94.3$5.8 GeneralDebt Fund$39.1$39.9$0.8 Electric Fund$140.4$159.0$18.6 Water Fund$38.7$43.9$5.2 WastewaterFund$24.8$28.2$3.4 SolidWaste Fund$22.9$25.1$2.2 Airport Fund$1.7$2.5$0.8 Internal Service Funds$48.7$53.8$5.1 Street ImprovementFund$6.1$7.2$1.1 Other Funds$6.3$5.9($0.4) Total Operating Funds$417.2$459.8$42.6 Grants Fund$7.1$6.3($0.8) CapitalImprov. Program (CIP)$162.7$278.9$116.2 Total AllFunds$587.0$745.0$158.0 FY 2012-13 Proposed Budget by Fund $745.0 million for all funds 80 12.7% General Fund GO Debt Service Fund 5.4% Electric Fund 37.4% Water Fund Wastewater Fund Solid Waste Fund Airport Fund Internal Service Funds 21.3% 21.3% Other Grants CIP 0.8% 5.9% 1.8% 3.8% 7.2% 3.4% 0.3% 40 EXHIBIT 9 7/27/2012 Next Steps 81 th August 5ÏEffective and Rollback Rates published. th August 7Budget W/ork SessionVote to consider th AÏW/ tax increase. th August 14ÏBudget Work Session. stst August 21ÏBudget Work Session/1Tax Rate/Budget Public Hearings. thnd August 28ÏBudget Work Session/2Tax Rate Public Hearing. September 11th ÏCity Council adopts tax rate and approves Annual Program of Services. 41